TENCENT(HK:00700) Sou Hu Cai Jing·2025-03-28 09:21Core Viewpoint - Ubisoft announced the establishment of a new company that will encompass its popular game IPs such as Assassin's Creed, Far Cry, and Rainbow Six, with an estimated valuation of €4 billion (approximately $4.3 billion), and Tencent will invest €1.16 billion for a 25% stake [1][5][6] Group 1: Company Structure and Investment - The new subsidiary will manage the teams behind the aforementioned IPs and oversee other IPs or any games currently in development by Ubisoft [1] - Tencent's investment will strengthen Ubisoft's balance sheet and support the long-term development of key game brands [8][9] - The new company will operate independently with its own management team, focusing on enhancing creative vision and streamlining operations [9] Group 2: Strategic Goals and Future Plans - Ubisoft aims to accelerate its transformation and change its business model by creating a dedicated subsidiary for its major brands [5][6] - The subsidiary will work on building a gaming ecosystem, enhancing single-player narrative quality, and enriching multiplayer experiences through more frequent content releases and social features [5][7] - The company plans to continue investing in classic brands like Ghost Recon and The Division, leveraging innovative technologies to drive their development [6][7] Group 3: Financial and Operational Details - The pre-financing enterprise value is estimated at €4 billion, which is about four times the average annual sales revenue for the fiscal years 2023-2025 [5] - The transaction is expected to be completed by the end of 2025, with Tencent holding customary minority shareholder rights and specific consent rights regarding the disposal of significant assets [9][10] - The agreement includes a five-year lock-up period for Tencent's shares, ensuring that Ubisoft retains majority voting rights and equity in the new subsidiary for at least two years [9][10]