‘Assassin’s Creed’ maker Ubisoft to create a €4 billion subsidiary with Tencent worth more than itself

Prominent video game maker Ubisoft Entertainment announced that it will be creating a new subsidiary for its Assassin’s Creed, Far Cry and Tom Clancy’s Rainbow Six games with an enterprise value of about €4 billion. Tencent Holdings Ltd. will invest €1.16 billion to acquire a 25 per cent stake in this new entity, which will hold the licenses for the intellectual property of the games in exchange for a royalty, according to a Bloomberg report. This new unit's €4 billion valuation is actually higher than the group's current enterprise value itself, of which Tencent already holds a 10 per cent stake. “The cash injection of over €1 billion is very significant, and solves the group’s financing problems.” This was the outcome of last year's disappointing Star Wars Outlaws launch and the delay of Assassin’s Creed Shadows, the latest installment in the franchise.