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

Ubisoft has established a new subsidiary focused on its Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, backed by a €1.16 billion (approximately $1.25 billion) investment from Tencent. This move comes right after the successful launch of Assassin's Creed Shadows, which has already attracted over 3 million players. Amidst a backdrop of recent challenges, including several high-profile flops, layoffs, studio closures, and game cancellations, Ubisoft is under immense pressure to succeed, especially following a historic low in its share price.

The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to develop game ecosystems that are both evergreen and multi-platform. Tencent holds a 25% stake in this venture. Ubisoft has outlined ambitious goals for this subsidiary, including enhancing the quality of narrative solo experiences, expanding multiplayer offerings with more frequent content updates, introducing free-to-play elements, and enhancing social features within games.

The company also plans to concentrate on the development of its Ghost Recon and The Division franchises, alongside efforts to grow its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, emphasized that this step marks a significant transformation for the company, aiming to create agile and ambitious operations. He highlighted the intention to build robust game ecosystems, foster high-performing brands, and innovate with emerging technologies.

The new subsidiary will encompass the development teams for Rainbow Six, Assassin’s Creed, and Far Cry, located in cities 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. This suggests that existing projects are secure, with no immediate indication of further layoffs.

The deal is set to be finalized by the end of 2025. As this story develops, Ubisoft aims to create a more focused and innovative organization, delivering exceptional gaming experiences while enhancing value for shareholders and stakeholders.

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