GamesIndustry.biz | Sagard NewGen acquires minority stake in Asobo to "support its growth, while preserving its strategic and creative autonomy"

[Maxime]

Microsoft Flight Simulator developer Asobo Studio opened its capital to Sagard NewGen.

The minority stake was acquired from Asobo's 12 founders, and aims at supporting the studio's growth, "while preserving its strategic and creative autonomy," the announcement said.

Sagard NewGen is a French private equity firm that was founded in 2020 to support companies in the healthcare and tech sectors. This is its second operation so far.

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Kinda puts an end to the "Microsoft should buy Asobo" thing going on for quite some times? I guess it's up to how you interpret "strategic and creative autonomy". Beside their long term commitment to Flight Simulator, Asobo is also working a new game with Focus (we won't act surprised when it turns out to be A Plague Tale 2).

 

[PlanetSmasher]

Sounds like there may have been attempts by someone to buy out the studio and they didn't want to be completely owned?

 

[DailyCalmSpirit]

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Kinda puts an end to the "Microsoft should buy Asobo" thing going on for quite some times? I guess it's up to how you interpret "strategic and creative autonomy". Beside their long term commitment to Flight Simulator, Asobo is also working a new game with Focus (we won't act surprised when it turns out to be A Plague Tale 2).

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Yep, can't imagine there's any other way to interpret it.

Good for them! Gonna be hard for studios to reject major offers going forward if they want to stay independent.

 

[Mass_Pincup]

A lot of people here are going to be disappointed by this news lol.

I'm happy to see a successful French studio managing to stay independent though.

 

[pg2g]

I interpret that to be more of a focus on their investment being a minority stake than to suggest it was a defensive move.

 

[YozoraXV]

MS must not be interested if they let this happen, kind of surprising.

 

[FarSight XR-20]

Asobo has with Microsoft a 10-year support agreement on Flight Simulator (until 2030 I guess ?), so I don't think an acquisition by MS would make much sense anyway.

 

[pg2g]

MS must not be interested if they let this happen, kind of surprising.

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Not everyone wants to be bought. Perhaps they want cash investment to grow while maintaining control.

 

[Deleted member 86306]

Good! Now give me Plague Tale 2

 

[Mass_Pincup]

I interpret that to be more of a focus on their investment being a minority stake than to suggest it was a defensive move.

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Sagard took about 30% though. Not to mention that in a press release, Asobo's CEO reaffirmed the fact that they want to stay independent and this investment will allow them better fund their projects to achieve that goal.

 

[cw_sasuke]

Guess Phil was ready to make a move.

 

[rrc1594]

Damn someone said no to Phil

 

[FantaSoda]

I don't think they need to do A Plague Tale 2. I just want them to do whatever they want. They have proven whatever genre they want to try out, they are going to crush it. Let them make an RPG!

 

[Raigor]

People talk about Ms but in France there's Nacon which is buying plenty of french studios left and right.

 

[Desodeset]

Many studios want to stay independent and they are seeking investments, not acquisitions. Before Asobo, there are studios like Bungie, Quantic Dream and Platinum Games. Not sure if IOI has investors. Remedy decided to go IPO and a few banks own stakes in the company.

This is the way in a world of sharks.

 

[Xadra]

Sounds like there may have been attempts by someone to buy out the studio and they didn't want to be completely owned?

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But isn't ASOBO Studio a private company? Doesn't make this a different situation than the Vivendi-Ubisoft for example.

I'm a little lost in this…

 

[Kyussons]

Good news : )

 

[DeathyG]

Good for them. Plague Tale was one of last-gen's best sleeper hits.

 

[Damn Silly]

Good on 'em. Excited for A Plague Tale 2, more Flight Sim and/or whatever is next for them.

 

[supercommodore]

But isn't ASOBO Studio a private company? Doesn't make this a different situation than the Vivendi-Ubisoft for example.

I'm a little lost in this…

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Yeah, they are a private company so aren't obliged to sell to anyone.

I imagine they had conversations with MS but looks like they wanted an investor rather than an owner. Either way, I'm glad they have some financial backing for the future.

 

[Prine]

Amazing studio, and if this is what they want, then good for them. They'll likely remain a key partner then for MS.

The work on Flight simulator is revolutionary (their tech stack).

 

[Theorry]

Plague Tale 2 is already in dev.
They have a deal for a game with Focus Home again for another game also.

And then they still have Flight Sim

 

[IIFloodyII]

But isn't ASOBO Studio a private company? Doesn't make this a different situation than the Vivendi-Ubisoft for example.

I'm a little lost in this…

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Yeah Ubisoft was done due to an hostile takeover attempt by Vivendi, was basically the last fuck off they had. ASOBO wouldn't be in that situation.

 

[PlanetSmasher]

But isn't ASOBO Studio a private company? Doesn't make this a different situation than the Vivendi-Ubisoft for example.

I'm a little lost in this…

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Precisely. A private company has a lot more leverage in preventing buyouts because the potential buyer can't just eat all of their stock in a hostile takeover. So it's possible companies were reaching out to them with feelers about acquisitions and Asobo just wanted financial support but not a total change in ownership.

 

[Crumrin]

Independence, the best outcome.

A lot of people here are going to be disappointed by this news lol.

I'm happy to see a successful French studio managing to stay independent though.

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lol. Pretty much.