Ubisoft, one of the world’s largest video game publishers, has concluded an agreement with bestselling author 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.

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 five million Euros 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,” says 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. 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."