Ubisoft sees biggest intraday rise in a year as Tencent investment closes
Quotes of Ubisoft Entertainment jumped 15% in Paris today, November 24, marking the sharpest intraday move in nearly a year. The company said it had received a previously agreed upon EUR1.16 billion cash investment from Tencent Holdings, funds it needs for the early repayment of loans after the company was found to be in breach of a loan agreement.
Details
Ubisoft’s share price climbed 15% today to mark the strongest intraday increase since December 6, 2024, Bloomberg reported. The stock briefly reached EUR8.08 per share during the session. The gains later faded, and the shares were up about 2.5% as of this writing.
Investors welcomed Ubisoft’s confirmation on Friday that Tencent had transferred EUR1.16 billion for a 26.32% economic interest in Vantage Studios, a new division announced in March.
Why the Tencent deal matters
The incoming cash allows Ubisoft to reduce leverage at a critical moment, the company said. The urgency emerged a week earlier, when Ubisoft delayed the release of its first-half results for the 2025-26 fiscal year and asked Euronext to halt trading. The developer offered no explanation at the time.
In its subsequent filing, Ubisoft said auditors had determined that some revenue had been recognized improperly, while other revenue should not have been booked in the first half. The findings triggered a breach of a loan agreement. Tencent’s funds will now be used for early repayment of that loan. As of September 30, Ubisoft had net debt of EUR1.42 billion, versus sales of EUR657.8 million.
The investment also supports Ubisoft’s broader restructuring. In January, the company plans to introduce a new operating model built around separate divisions known as "creative houses," intended to increase efficiency, autonomy, and accountability.
Ubisoft has "struggled to remain competitive" in recent years, Bloomberg has noted, as high-profile titles like Avatar: Frontiers of Pandora and Star Wars Outlaws have fallen flat in what is an increasingly competitive consumer market.
