The market seems to have responded positively to the announcement of the new agreement between Tencent and Ubisoft. Ubisoft’s stock prices have significantly increased, with a 12% rise recorded during the first hours of trading on Friday morning.
This positive reaction can be attributed to the large investment made by Tencent, which has injected 1.16 billion euros into Ubisoft. This funding is expected to help Ubisoft recover from the losses it faced throughout 2024.
Yesterday, it was reported that Ubisoft has created a new company with Tencent to manage its most successful intellectual properties, such as Assassin’s Creed, Far Cry, and Rainbow Six Siege.
A New and Promising Subsidiary
The newly formed subsidiary, valued at around 4 billion euros, is based on the financial backing from Tencent. This entity will focus on managing Ubisoft’s most popular game series and is part of a larger reorganization designed to increase focus on high-profile titles.
The deal is still being finalized, but if completed by 2025, it is expected to place Ubisoft in a much stronger economic position than it is currently, according to analysts from Barclays and others.
Tencent will be a minority shareholder in this new subsidiary, holding a 25% stake. Despite this, their role will be significant, with the goal of strengthening Ubisoft’s overall financial situation while promoting a more agile organization.
Ubisoft’s Future Plans with Tencent
According to Ubisoft, this new subsidiary will focus on building game ecosystems designed to be evergreen and multi-platform. The increased investment and enhanced creative capabilities should lead to a rise in the quality of single-player experiences, as well as more frequent updates for multiplayer content.
