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

Ubisoft has recently established a new subsidiary dedicated to its flagship franchises—Assassin’s Creed, Far Cry, and Tom Clancy's Rainbow Six—backed by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This move comes shortly after the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. Amidst a backdrop of high-profile flops, layoffs, studio closures, and game cancellations, Ubisoft is under intense pressure to ensure the success of Assassin's Creed Shadows, especially after its share price reached an all-time low.

The newly formed subsidiary, valued at €4 billion (around $4.3 billion) and headquartered in France, aims to develop "game ecosystems designed to become truly evergreen and multi-platform." Tencent's involvement includes a 25% stake in the venture.

Ubisoft has outlined ambitious plans for the subsidiary, stating that it will enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content updates, introduce free-to-play elements, and incorporate social features into their games. The company also plans to focus on the development of its Ghost Recon and The Division franchises while expanding its top-performing titles.

Yves Guillemot, Ubisoft's co-founder and CEO, heralded this development as a pivotal moment in the company's history. He emphasized that the new subsidiary will enable Ubisoft to be agile and ambitious, concentrating on building robust game ecosystems, growing high-performing brands, and innovating with new IPs using cutting-edge technologies.

Guillemot further stated that the subsidiary will have a dedicated and autonomous leadership team tasked with transforming these three major franchises into unique ecosystems. This strategic move aims to enhance the company's balance sheet, crystallize the value of its assets, and set the stage for long-term growth and success of these franchises.

The new subsidiary will encompass the teams working on Rainbow Six, Assassin’s Creed, and Far Cry, located in cities like Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also manage Ubisoft’s back-catalog and future game developments, suggesting that existing projects are secure, with no current indications of additional layoffs.

The transaction is slated for completion by the end of 2025, marking a significant step in Ubisoft's ongoing transformation and focus on delivering exceptional gaming experiences while creating value for shareholders and stakeholders.

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