Ubisoft’s Tencent deal goes through

Ubisoft has announced the completion of Tencent’s €1.16 billion investment in Vantage Studios, the division in charge of the Assassin’s Creed, Far Cry, and Rainbow Six franchises.

Vantage Studios became operational on October 1, and includes Ubisoft’s offices in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, encompassing a total of 2,300 employees. Following completion of the deal, Tencent now holds a 26.32% stake in Vantage Studios, which remains controlled by Ubisoft.

In a press statement, Ubisoft said that Vantage Studios has a “pre-money enterprise value of €3.8 billion,” while CEO Yves Guillemot heralded the deal as a milestone. “Today’s closing crystallizes the value of our world-class IPs and marks a pivotal milestone in Ubisoft’s ongoing transformation,” he said. “It also brings in €1.16 billion of proceeds that deleverages the Group, strengthens our balance sheet and will support selected investment opportunities across the rest of the company.

“Vantage Studios, fully operational since October 1st under a dedicated leadership team, embodies the principles of autonomy, focus and player centricity, with clear accountability. It brings our Creative Houses model to life with the ambition to accelerate the growth of our flagship franchises on their path to becoming annual billion-euro brands.”

Martin Lau, President of Tencent, said: “Tencent is delighted to be building on our strong relationship with Ubisoft through this investment in the launch of Vantage Studios. With its capable team and world-class creative vision, we look forward to Vantage Studios accelerating the growth of Assassins Creed, Far Cry, and Rainbow Six as evergreen platforms providing entertainment and inspiration to generations of players.”

In its latest financial results, announced ahead of the completion of the Tencent deal, Ubisoft reported a net debt of €1.15 billion.