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

Ubisoft has recently established a new subsidiary company centered around its flagship brands: Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. This move comes with a significant €1.16 billion (approximately $1.25 billion) investment from the Chinese conglomerate Tencent.

This announcement follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The release of this game comes at a critical time for Ubisoft, which has faced a series of challenges including high-profile flops, layoffs, studio closures, and game cancellations. These setbacks have led to the company's share price reaching an all-time low, placing 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 will be 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 has outlined ambitious plans for the subsidiary, stating that it will enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content releases, introduce free-to-play elements, and integrate more social features. The company also plans to focus on the development of its Ghost Recon and The Division franchises, while continuing to grow its top-performing games.

Yves Guillemot, Ubisoft's co-founder and CEO, remarked, "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." He emphasized the goal of building strong, evergreen game ecosystems, growing high-performing brands, and creating new IPs using cutting-edge technologies.

Guillemot further explained that the creation of this dedicated subsidiary, along with Tencent's investment, will solidify the value of Ubisoft's assets, strengthen its financial position, and set the stage for the long-term growth and success of these key franchises. The subsidiary will operate with an autonomous leadership team, focusing on transforming these three brands into unique ecosystems.

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

The 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. 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 indications of further layoffs.

The transaction is slated to be completed by the end of 2025.

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