Ubisoft Launches New Subsidiary for Major IPs with Tencent's €1.16B Investment

Ubisoft has established a new subsidiary centered around its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, with a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, a leading Chinese conglomerate.

This announcement follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. Ubisoft has faced numerous challenges recently, including high-profile flops, layoffs, studio closures, and game cancellations, leading up to the release of Assassin's Creed Shadows. The pressure to succeed is immense, especially after the company's share price reached an all-time low.

The new subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to develop game ecosystems that are "truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture.

Ubisoft outlined that the subsidiary will leverage increased investment and enhanced creative capabilities to improve the quality of narrative solo experiences, expand multiplayer offerings with more frequent content releases, introduce free-to-play elements, and integrate more social features.

The company also plans to focus on the development of its Ghost Recon and The Division franchises while continuing to grow its top-performing games.

Yves Guillemot, co-founder and CEO of Ubisoft, stated, "Today Ubisoft is opening a new chapter in its history. As we accelerate the company’s transformation, this is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious. We are focused on building strong game ecosystems designed to become evergreen, growing high-performing brands and creating new IPs powered by cutting-edge and emerging technologies."

Guillemot further emphasized the strategic importance of the new subsidiary, saying, "With the creation of a dedicated subsidiary that will spearhead development for three of our largest franchises and the onboarding of Tencent as a minority investor, we are crystalizing the value of our assets, strengthening our balance sheet, and creating the best conditions for these franchises’ long term growth and success. With its dedicated and autonomous leadership team, it will focus on transforming these three brands into unique ecosystems."

Ubisoft's commitment to building a more focused organization aims to elevate its brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services. The goal is to deliver enriching, memorable games that surpass players' expectations and generate superior value for shareholders and stakeholders.

The new subsidiary will encompass the teams developing the Rainbow Six, Assassin’s Creed, and Far Cry franchises in locations such as Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also include Ubisoft’s back-catalog and any new games currently in development or planned for the future, suggesting that existing projects are secure with no immediate plans for additional layoffs.

The transaction is anticipated to be finalized by the end of 2025.

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