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

Ubisoft has recently established a new subsidiary focused on its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, backed by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This move comes shortly after the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The launch follows a challenging period for Ubisoft, marked by several high-profile flops, layoffs, studio closures, and game cancellations, which led to the company's share price reaching an all-time low. The pressure is now on Assassin's Creed Shadows to perform well.

The newly formed 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 releases, introduce free-to-play elements, and integrate more social features into their games.

Ubisoft also intends to concentrate on the development of its Ghost Recon and The Division franchises while continuing to grow its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, stated, "Today Ubisoft is opening a new chapter in its history." He emphasized the company's transformation and the creation of a dedicated subsidiary to spearhead the development of three major franchises, aiming to transform these brands into unique ecosystems. The goal is to build a more focused organization that can elevate their brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services.

The new subsidiary will include teams from Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, working on the Rainbow Six, Assassin’s Creed, and Far Cry franchises, as well as Ubisoft’s back-catalog and any new games in development. This suggests that existing projects are secure, and there are no immediate plans for further layoffs. The transaction is expected to be completed by the end of 2025.

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