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4w ago

Ubisoft Secures €1.16 Billion Tencent Investment and Launches New Franchise-Focused Subsidiary

The deal reduces Ubisoft's debt, boosts market confidence, and aligns with the success of 'Assassin’s Creed Shadows,' which has drawn over 3 million players since its release.

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Porte de Versailles, à Paris, le 25 octobre 2024.
Empêtré dans des difficultés financières, le géant français des jeux vidéo Ubisoft va accélérer sa transformation en créant fin 2025 une nouvelle filiale en partenariat avec le groupe chinois Tencent
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Overview

  • Tencent's €1.16 billion investment significantly alleviates Ubisoft's €1.4 billion debt burden, stabilizing its financial position.
  • A new subsidiary, valued at €4 billion and partially owned by Tencent (25%), will consolidate Ubisoft's key franchises, including Assassin’s Creed, Far Cry, and Rainbow Six.
  • The success of 'Assassin’s Creed Shadows,' with over 3 million players in its first week, highlights a positive shift for Ubisoft after recent struggles with underperforming releases.
  • Ubisoft's stock price surged over 10% following the announcement, signaling renewed market confidence in the company's strategic direction.
  • While the new subsidiary strengthens focus on core franchises, questions remain about the future of Ubisoft's smaller brands and ongoing restructuring efforts.