Ubisoft Creates €4 Billion Subsidiary with Tencent Investment

Ubisoft Entertainment's shares surged by over 10% following the announcement of a new subsidiary focused on its top franchises, including Assassin's Creed and Far Cry, with Tencent investing €1.16 billion for a 25% stake. This new unit, valued at approximately €4 billion, aims to enhance Ubisoft's financial standing and resolve recent challenges tied to poor performance and internal issues. Analysts view this strategic move as a step towards stabilizing Ubisoft's balance sheet and addressing investor concerns. The subsidiary will be managed independently and is expected to create more sustainable, multi-platform gaming ecosystems. Ubisoft's CEO, Yves Guillemot, emphasized the potential of these franchises to evolve into long-lasting gaming platforms. This investment marks a significant financial boost for Ubisoft, which has struggled with revenue drops and internal chaos in recent years.