The spinoff will lead to "additional complexity for investors attempting to value the company," they said in a note Thursday, adding it "appears to be driven by the Guillemot family's desire to retain effective control of the Ubisoft parent."
The investment bank's analysts added that "it's not clear to us that the 'everything else' remaining has significant value in a market where the big franchises are becoming ever more dominant."
The deal is expected to close before the end of 2025, pending all necessary regulatory clearances.
Michael Pachter, managing director of equity research at Wedbush Securities, said that he thinks Ubisoft management is "overly optimistic that this will result in investors valuing the company much higher."