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'Tom Clancy' Name Acquired by Ubisoft PDF Print E-mail
Written by Alexis M. (Rivithed)   
Thursday, 20 March 2008
Today Ubisoft announced that it has acquired the "Tom Clancy" name, which as Ubisoft puts it, makes it "free of all related future royalty payments." So you can bet the "Tom Clancy" signature won't be leaving the Ubisoft series of tactical and FPS games.

With the recently released Tom Clancy's Rainbow Six Vegas 2, I'm just fine with R6V2. Or even just Rainbow Six Vegas 2. Most gamers probably have the "Tom Clancy" signature embedded in their head by now when it comes to games like Ghost Recon, Rainbow Six or Splinter Cell, and just take that for granted. The deal will serve as a method of cross promotion among other media, by using the "Tom Clancy" branding. Ubisoft retains the rights for the Tom Clancy name not only in video games, but also in "related books, movies and merchandising." Ubisoft secures the name indefinitely and gives Tom Clancy a single, undisclosed, payment rather than royalties each time a game is released.

"The Tom Clancy brand is recognized around the world for offering exciting video games, films and books," said Yves Guillemot, Chief Executive Officer at Ubisoft. "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. Capitalizing 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."

Tom Clancy is to Ubisoft as Madden is to EA.

From Ubisoft

Press release:

UBISOFT ACQUIRES THE TOM CLANCY NAME FOR VIDEO GAMES, RELATED BOOKS, MOVIES AND MERCHANDISING Paris, FRANCE – 20 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 ancillary 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 ancillary 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 recognized 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. Capitalizing 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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