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

Ubisoft has embarked on a significant strategic move by establishing a new subsidiary focused on its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, bolstered by a €1.16 billion (approximately $1.25 billion) investment from Tencent. This news arrives amidst the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The creation of this subsidiary follows a challenging period for Ubisoft, marked by high-profile flops, layoffs, studio closures, and game cancellations. With the company's share price hitting a historic low, the pressure on Assassin's Creed Shadows to perform well is immense.

Valued at €4 billion (approximately $4.3 billion), the new subsidiary will be headquartered in France and aims to develop "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture. Ubisoft plans to enhance the quality of narrative solo experiences, expand multiplayer offerings, introduce free-to-play elements, and integrate more social features into their games. The company also intends to focus on developing its Ghost Recon and The Division franchises while continuing to grow its top-performing titles.

"Today Ubisoft is opening a new chapter in its history," stated Yves Guillemot, co-founder and CEO of Ubisoft. "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 elaborated on the strategic importance of the new subsidiary: "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."

He emphasized Ubisoft's commitment to refining its organization: "We are committed to building a sharper, more focused organization-one where talented teams will take our brands to the next level, accelerate the growth of emerging franchises, and lead innovation in next generation technologies and services, all with the goal of delivering enriching, memorable games that exceed players' expectations, and create superior value for our shareholders and other stakeholders."

This new subsidiary will encompass the development teams for Rainbow Six, Assassin’s Creed, and Far Cry located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, along with Ubisoft’s back-catalog and any new games currently under development or planned for the future. This suggests that existing projects will continue safely, with no immediate plans for further layoffs mentioned.

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

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