Tencent Holdings (HKG:0700, OTC:TCEHY) has invested €1.2 billion in a new Ubisoft Entertainment (OTC:UBSFF, EPA:UBI) spin-off that will manage several of the French gaming firm’s flagship franchises, including Assassin’s Creed, Far Cry and Rainbow Six.
The deal values the new entity at around €4 billion. Tencent will hold a 25% stake, with Ubisoft retaining the rest.
The move strengthens Tencent’s position as Ubisoft’s second-largest shareholder, holding just under 10%.
Ubisoft, facing pressure from underperforming titles and delays, will now focus on other key franchises, such as Ghost Recon and The Division.