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

Ubisoft has recently announced the formation of a new subsidiary dedicated to its iconic Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six franchises, with a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, the Chinese tech giant. This move comes as Ubisoft navigates through turbulent times, highlighted by the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. This success is crucial for Ubisoft, especially after enduring high-profile flops, layoffs, studio closures, and game cancellations that led to its share price hitting an all-time low.

The newly established subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, 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 with more frequent content updates, introduce free-to-play elements, and integrate more social features into their games.

In addition to the focus on Assassin’s Creed, Far Cry, and Rainbow Six, Ubisoft will continue to develop its Ghost Recon and The Division franchises while nurturing its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, emphasized this as a pivotal moment in the company's history, aiming to transform Ubisoft's operational model to be more agile and ambitious. The goal is to build robust game ecosystems, grow high-performing brands, and innovate with emerging technologies.

This new subsidiary will encompass teams working on these franchises across various locations including Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also manage Ubisoft's back-catalog and future projects, ensuring the safety of existing developments without any immediate plans for further layoffs.

The deal is set to be finalized by the end of 2025, marking a significant step in Ubisoft's strategy to strengthen its market position and deliver exceptional gaming experiences.

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