Ubisoft jumps 10% after Tencent invests in new subsidiary.
Ubisoft shares rose more than 10% on Friday after the French video game maker announced plans to set up a subsidiary in which Tencent will invest 1.16 billion euros.
The creator of Assassin’s Creed said on Thursday the new subsidiary would be valued at around 4 billion euros ($4.32 billion) and will bring together the Assassin’s Creed, Far Cry and Tom Clancy’s Rainbow Six brands.
The subsidiary will develop the three franchises and help Ubisoft strengthen its balance sheet, CEO Yves Guillemot said in a statement on Thursday.
Morningstar said in a note: “Ubisoft gains financial flexibility with the cash infusion, which equates to about two thirds of the firm’s pre-announcement market cap.”
The Paris-listed stock was up 10.5% to 14.3 euros by 0833 GMT, for a total market capitalization of 1.9 billion euros.
Source: Globalbankingandfinance