‘Assassin’s Creed’ Maker Carves Out €4 Billion Unit with Tencent
finance.yahoo.com
(Bloomberg) -- Ubisoft Entertainment SA’s US-listed shares soared as much as 20% after the video game maker said it will carve out a unit including Assassin’s Creed, Far Cry and Tom Clancy’s Rainbow Six into a subsidiary with an enterprise value of about €4 billion ($4.3 billion).Most Read from BloombergThey Built a Secret Apartment in a Mall. Now the Mall Is Dying.Why Did the Government Declare War on My Adorable Tiny Truck?How SUVs Are Making Traffic WorseTrump Slashed International Aid. Genev

Ubisoft Entertainment SA will carve out a unit including Assassin’s Creed, Far Cry and Tom Clancy’s Rainbow Sixinto a subsidiary with an enterprise value of about €4 billion ($4.3 billion).

Tencent Holdings Ltd. will invest €1.16 billion to acquire a 25% stake in the new entity, which will have licenses for the intellectual property of the games in exchange for a royalty, the French video game company said in a statement on Thursday.

Ubisoft, which was founded by France’s Guillemot family, has been working to bring new investors into its video game properties, Bloomberg News has reported. The valuation of the new unit surpasses Ubisoft’s current enterprise value.

Ubisoft’s US-listed depositary receipts jumped as much as 12.5% on the news.