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

Ubisoft has recently established a new subsidiary company focused on its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six brands, securing a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, the Chinese tech giant. This development follows the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The release of Assassin's Creed Shadows comes after a challenging period for Ubisoft, marked by several high-profile flops, layoffs, studio closures, and game cancellations, resulting in the company's share price hitting a historic low. Consequently, there is immense pressure on Assassin's Creed Shadows to perform well.

The newly formed subsidiary, which is valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to create "game ecosystems designed to become truly evergreen and multi-platform." Tencent's investment equates to a 25% stake in the subsidiary. Ubisoft has outlined plans for this new entity to enhance the quality of narrative solo experiences, expand multiplayer offerings with frequent content updates, introduce free-to-play elements, and incorporate more social features.

In addition to these flagship franchises, Ubisoft will continue to focus on developing its Ghost Recon and The Division series, as well as nurturing its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, emphasized that this move marks a significant chapter in the company's history, aimed at accelerating its transformation and enhancing its operating model to be both agile and ambitious.

Guillemot further stated, "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." He highlighted the strategic importance of the new subsidiary in leveraging Ubisoft's assets, strengthening its financial position, and setting the stage for long-term growth and success of the three major franchises. The subsidiary will operate with a dedicated and autonomous leadership team, concentrating on evolving these brands into comprehensive ecosystems.

Ubisoft remains committed to building a more focused organization, empowering talented teams to elevate its brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services. The goal is to deliver exceptional, memorable games that surpass player expectations and generate significant value for shareholders and stakeholders.

The new subsidiary will encompass the teams currently 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 in development or planned for the future, suggesting that existing projects are secure with no immediate plans for further layoffs.

The transaction is slated for completion by the end of 2025, marking a pivotal moment in Ubisoft's strategic evolution.