We are advising Tencent on the transaction

Davis Polk is advising Tencent Holding Limited on its investment in a new subsidiary of Ubisoft Entertainment S.A. Under the binding agreement announced on March 27, 2025, Tencent will invest €1.16 billion for an approximate 25% economic interest in the new subsidiary of Ubisoft. The newly formed subsidiary, headquartered in France and fully owned by Ubisoft prior to the transaction, will focus on developing Ubisoft’s flagship franchises, including Tom Clancy’s Rainbow Six, Assassin’s Creed and Far Cry. The transaction is subject to regulatory approval and is expected to close by the end of 2025.

The subsidiary will be created through a carve-out process, which involves the separation of specific assets and operations from Ubisoft’s existing structure to form a distinct legal entity. The new subsidiary will remain under Ubisoft’s exclusive control and will be consolidated in its financial statements. Tencent will have customary minority protection veto rights and certain consent rights in connection with the disposal of important new subsidiary assets.

Davis Polk previously advised Tencent on its €300 million investment in Ubisoft in 2022.

Tencent is an integrated internet company that provides value-added internet services, including communications and social, entertainment, content, online advertising, fintech and cloud services.

Ubisoft is a producer, publisher and distributer of video games for consoles, PCs, smartphones and tablets. Ubisoft’s global teams create and develop a deep and diverse portfolio of games, featuring brands such as Assassin’s Creed, Brawlhalla, For Honor, Far Cry, Tom Clancy’s Ghost Recon, Just Dance, Rabbids, Tom Clancy’s Rainbow Six, The Crew and Tom Clancy’s The Division.

The Davis Polk corporate team includes partner Miranda So, counsel – registered foreign lawyer Xi Shi, counsel Sam Kelso and registered foreign lawyers Rebecca Yang and David Moon. Partner Frank Azzopardi and associate Francesca Masella are providing intellectual property advice. Members of the Davis Polk team are based in the Hong Kong and New York offices.

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