Investing.com -- Ubisoft Entertainment SA (LON:0NVL), the French video game company, announced on Thursday that it is forming a subsidiary with an enterprise value of approximately €4 billion ($4.3 billion). This new entity will include popular game franchises such as Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six.
Chinese multinational conglomerate Tencent Holdings Ltd (HK:0700) (F:NNND). is set to invest €1.16 billion for a 25% stake in this newly formed subsidiary. In exchange for a royalty, the new entity will hold licenses for the intellectual property of the games.
Ubisoft (EPA:UBIP), established by the Guillemot family in France, has been actively seeking new investors for its video game properties. The value of this new unit exceeds the current enterprise value of Ubisoft, indicating a significant milestone for the company.
Ubisoft CEO Yves Guillemot shared his enthusiasm about this development, stating, "Today Ubisoft is opening a new chapter in its history. This is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious."
The new subsidiary will not only include the teams working on the mentioned titles but will also manage the back catalog and any forthcoming games under development. This strategic move by Ubisoft and Tencent’s investment marks a significant moment in the gaming industry.
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