Ubisoft shares fell on Wednesday after its deal with Tencent to allow the Chinese tech firm to raise its stake was seen by investors as dampening the company’s prospects.
The deal with Tencent values the “Assassin’s Creed” maker at $10bn, which equals approximately 80 euros per share.
It makes Chinese-owned Tencent Ubisoft’s single biggest shareholder, owning an 11% stake in the French video-game maker.
As per the terms of the deal, the stake can be upped to as much as 17%.
A number of larger companies have acquired some of the more “indie” game producers as of late, sparking a period of consolation across the sector, an example of which being NetEase purchasing Heavy Rain maker Quantic Dream this week.
Ubisoft has been marred by late releases and allegations of sexual harassment over the course of the previous four years.
Traders and analysts said the Tencent deal was positive for the French company but removed the speculative appeal of Ubisoft shares, Reuters reported.
“The prospects of a takeover and a fight for Ubisoft are gone as Tencent is now really (there),” MidCap’s analyst Charles-Louis Planade told Reuters.
Another trader, based in London, said Ubisoft shares were down on “disappointment that it may not be a takeover target as Tencent has increased (its) stake.”