Ubisoft shares tumble as Tencent deal seen dampening

Shares in Ubisoft Entertainment tumbled on Wednesday after it announced a deal that sees China's Tencent Holdings raise its stake in the company, a move which analysts say dampens the prospect of a full sale of the French game maker, Qazet.az reports according to company.

It makes Tencent Ubisoft's single biggest shareholder with an overall stake of 11%, which can be further increased to as much as 17%.

The deal, which comes hot on the heels of the acquisition by NetEase of unlisted French video games maker Quantic Dream, highlights a wave of consolidation in the sector, with tech giants snapping up independent players.