Unlocking Success: How ‘Assassin’s Creed’ Creator Teams Up with Tencent in a €4 Billion Venture!

Ubisoft’s shares jumped 20%, following big news about its future. The video game giant is splitting off a new subsidiary that will house popular franchises like Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. This new entity holds an impressive enterprise value of around €4 billion, which is about $4.3 billion.

Tencent Holdings is making a significant investment, planning to buy a 25% stake in this new venture for €1.16 billion. This investment shows Tencent’s confidence in Ubisoft, especially since they already own 10% of the company. Experts believe this act signals that investors see Ubisoft’s current stock price as undervalued.

The changes come after a tough few years for Ubisoft, particularly as the effects of pandemic lockdowns lingered. The company faced challenges with last year’s launch of Star Wars Outlaws and delays in releasing its latest Assassin’s Creed title. However, Ubisoft CFO Frederick Duguet noted that the competitive interest leading to this deal highlights the value surrounding its franchises.

Charles-Louis Planade, an analyst from Midcap Partners, commented on the situation, mentioning that the company was perceived as undervalued. The cash infusion from Tencent is crucial, helping Ubisoft tackle its debt problems.

Ubisoft’s CEO, Yves Guillemot, called this restructuring a “foundational step” toward a more agile business model. With the funds from this deal, the company aims to pay down debts and foster its various game franchises.

This new subsidiary will not only hold existing franchises but will also oversee new game development. Analysts expect the deal to finalize by the end of 2025.

In recent news, Assassin’s Creed Shadows, which debuted on March 20, has received a warm reception. Early reviews gave it an average score of 82 out of 100 on Metacritic, surpassing earlier game launches. However, Ubisoft hasn’t shared concrete sales numbers yet.

Overall, this move signals a new chapter for Ubisoft, aiming for growth and stability amid a rapidly changing gaming landscape. For fans and investors alike, it’s an exciting time to see how these changes will unfold.

For more insights on Ubisoft’s strategic moves, check out Bloomberg’s coverage here.

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Assassin’s Creed, Bloomberg, Ubisoft Entertainment, Tencent Holdings Ltd., video game maker