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

Ubisoft has announced the creation of a new subsidiary focused on its major franchises: 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 Tencent, a Chinese tech giant. The new company, valued at €4 billion (about $4.3 billion), is set to be based in France and aims to develop game ecosystems that are both evergreen and multi-platform. Tencent will hold a 25% stake in this venture.

The announcement follows the recent launch of Assassin's Creed Shadows, which has already surpassed 3 million players. This success is crucial for Ubisoft, which has faced numerous challenges including high-profile flops, layoffs, studio closures, and game cancellations. These difficulties led to Ubisoft's share price reaching a historic low, putting immense pressure on the company to deliver with Assassin's Creed Shadows.

Ubisoft's vision for the new subsidiary includes enhancing the quality of narrative solo experiences, expanding multiplayer offerings with more frequent content releases, introducing free-to-play elements, and integrating social features. Additionally, Ubisoft plans to concentrate on developing 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. 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 focus on building strong, evergreen game ecosystems, growing high-performing brands, and creating new IPs using cutting-edge technologies.

The new subsidiary will encompass the teams working on 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 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. Ubisoft remains committed to building a more focused organization that will elevate its brands, accelerate the growth of emerging franchises, and lead in next-generation technologies and services. The goal is to deliver enriching, memorable games that meet and exceed players' expectations, creating superior value for shareholders and stakeholders alike.