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

Ubisoft has announced the formation of a new subsidiary dedicated to its Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, bolstered by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This move comes amidst the recent success of Assassin's Creed Shadows, which has surpassed 3 million players, following a challenging period for Ubisoft marked by high-profile flops, layoffs, studio closures, and game cancellations. With Ubisoft's share price reaching an all-time low, the success of Assassin's Creed Shadows is crucial.

The newly established subsidiary, headquartered in France and valued at €4 billion (about $4.3 billion), aims to create "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture.

According to Ubisoft, the subsidiary will enhance the quality of narrative solo experiences, expand multiplayer offerings, increase the frequency of content releases, introduce free-to-play elements, and incorporate more social features. Additionally, Ubisoft plans to concentrate on developing its Ghost Recon and The Division franchises while expanding its top-performing games.

Yves Guillemot, Ubisoft’s co-founder and CEO, 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."

He further elaborated, "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."

Guillemot emphasized Ubisoft's commitment to a more focused organization, aiming 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 exceed players' expectations and create superior value for shareholders and stakeholders.

This new subsidiary will encompass teams in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, responsible for the Rainbow Six, Assassin’s Creed, and Far Cry franchises, as well as Ubisoft’s back-catalog and future projects. This suggests that existing projects will continue without further layoffs, although no official word has been given on this matter.

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

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