French video game maker Ubisoft Entertainment SA is creating a separate subsidiary that will include the division that develops Assassin's Creed, Far Cry and Tom Clancy's Rainbow Six. The newly created company is valued at about 4 billion euros, or $4.3 billion. Shares of Ubisoft Entertainment SA jumped 20% on the news.
French video game maker Ubisoft Entertainment SA is creating a separate subsidiary that will include the division that develops Assassin's Creed, Far Cry and Tom Clancy's Rainbow Six. The newly created company is valued at about 4 billion euros, or $4.3 billion. Shares of Ubisoft Entertainment SA jumped 20% on the news.
China's Tencent Holdings Ltd. will invest 1.16 billion euros to acquire a 25% stake in a new company that will license gaming intellectual property in exchange for royalties, the Paris-based video game maker said in a statement, Bloomberg reported .
The deal is a vote of confidence from Tencent, which already owns 10% of Ubisoft, after a difficult few years since the easing of lockdown restrictions due to the pandemic. The unit's valuation of 4 billion euros exceeds the group's current value, meaning Tencent believes the group's shares are undervalued.
The new subsidiary will include the games teams, as well as oversee the back catalog and all new games in development. The deal is expected to close by the end of 2025.
“This is a fundamental step in changing Ubisoft’s operating model, allowing us to be flexible and ambitious,” Ubisoft CEO Yves Guillemot said in a statement. Ubisoft will use the proceeds from the sale to pay down debt and support other franchises.
Assassin's Creed Shadows was released on March 20th to generally positive reviews. While the company didn't reveal specific sales figures for the new game, it said in a LinkedIn post that the launch was outperforming its predecessors. According to review aggregator Metacritic, initial reviews averaged 82 out of 100.
