Ubisoft buys Clancy IP

By Patrick Garratt, Thursday, 20 March 2008 20:21 GMT

Ubisoft has bought the rights to the Tom Clancy IP from the man himself for an undisclosed sum, but the publisher confirmed that it’s going to be €20 million lighter at the end of financial 2008 with additional payments to be made as far as fiscal 2010.

“After ten years of a highly successful collaboration which has seen the creation of blockbusters that set standards in the videogame industry, such as Tom Clancy’s Splinter Cell, Tom Clancy’s Ghost Recon, and Tom Clancy’s Rainbow Six, today, acquiring the perpetual property rights of the Tom Clancy name for video games and related projects is a major event,” said Ubisoft boss Yves Guillemot.

Press release after the link.

UBISOFT ACQUIRES THE TOM CLANCY NAME
FOR VIDEO GAMES, RELATED BOOKS, MOVIES AND MERCHANDISING

LONDON, UK – 20th March 2008 – Today, Ubisoft, one of the world’s largest video game publishers, announces that it has concluded an agreement with Mr. Tom Clancy to acquire all intellectual property rights to the Tom Clancy name, on a perpetual basis and free of all related future royalty payments, for use in video games and associated products including related books, movies and merchandising products.

The price of this all cash acquisition is not currently disclosed. Post acquisition, Ubisoft expects to have a net cash position of around 130 M€ by the end of fiscal 2007-08, compared to a previous expectation of approximately 150 M€. Additional payments will be made as well in fiscal 2008-09 and fiscal 2009-10.

On the basis of past performance of Tom Clancy branded video games, and excluding any potential contribution coming from sales of associated products, the royalty savings generated by this acquisition are estimated to have an average positive impact on Ubisoft’s operating income of a minimum of 5 M€ per year.

“After ten years of a highly successful collaboration which has seen the creation of blockbusters that set standards in the videogame industry, such as Tom Clancy’s Splinter Cell, Tom Clancy’s Ghost Recon, and Tom Clancy’s Rainbow Six, today, acquiring the perpetual property rights of the Tom Clancy name for video games and related projects is a major event,” stated Yves Guillemot, Chief Executive Officer at Ubisoft. “The future of our industry lies in our capacity to create and develop brands that captivate consumers and that present myriad of opportunities for the full spectrum of entertainment, be it video games, books, movies or other media. The Tom Clancy brand is recognised around the world for offering exciting video games, films and books. The most recent example of such value creation through brand management is the EndWar book, based on the video game story, which has been in the NY Times top 10 Paperback Mass Market Fiction bestseller list for the last four weeks. Capitalising on the strong franchises that we’ve built over the past 10 years, we will take the Tom Clancy game brand to the next level of the global entertainment industry

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