Tencent invests 1.16 billion euros to acquire a 25% stake in Ubisoft's new subsidiary, with the transaction expected to be completed by the end of the year

According to Bloomberg, Ubisoft has split its popular game IPs such as Assassin's Creed, Far Cry, and Rainbow Six into a new subsidiary valued at approximately 4 billion euros (approximately 4.3 billion US dollars). Tencent Holdings will spend 1.16 billion euros to acquire a 25% stake in the subsidiary, and the new entity will hold the IP licenses for these games and operate them by charging royalties. This transaction is expected to be completed by the end of 2025, and Ubisoft will use the proceeds from the sale to repay debts and support the development of other game series. Tencent's investment is seen as a vote of confidence in Ubisoft, which has already initiated strategic adjustments due to the industry downturn and poor performance of multiple games after the pandemic. The new subsidiary will include teams developing these games and controlling existing games and ongoing projects. After the news was released, Ubisoft's depositary receipts (ADRs) listed in the United States rose by 20%.