China’s Tencent increases its stake in Ubisoft, the maker of “Assassin’s Creed”

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Tencent (HK: 0700 ) Holdings Ltd increased its stake in Ubisoft (LON: 0NVL ) Entertainment SA, a business that values ​​France’s biggest game developer at around $10 billion, as big companies Chinese tech companies continue their quest for growth abroad.

The interest in Ubisoft comes as the world’s largest games company by revenue offsets slowing growth at home with purchases including 16.25% of Japanese “Elden Ring” developer FromSoftware, announced today. just a week ago.

At the same time its domestic rival NetEase Inc said it would buy French game maker Quantic Dream.

The recent acquisition makes Tencent Ubisoft’s largest individual shareholder, with a global stake of 11%, which may rise to 17%.

The valuation of the maker of the “Assassin’s Creed” and “Tom Clancy’s” video game franchises climbs to about 80 euros per share, much higher than Tuesday’s closing price of 43.5 euros.

The move also ends a difficult four-year spell at Ubisoft, which has included delays to new games and allegations of sexual harassment that have led to a senior management revamp. The firm’s share price fell in the period from about 100 euros to less than 44 euros on Tuesday.

“Tencent is a key partner for many of the industry leaders, who have created some of the most outstanding video games,” said Ubisoft CEO Yves Guillemot. “This transaction strengthens our ability to create strong value for years to come.”

The purchase also makes Tencent part of a shareholder pact with the Guillemot family, founders of Ubisoft.

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