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

Ubisoft has announced the creation of a new subsidiary company focused on its Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six brands, backed by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This news follows the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The launch comes after 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 social features into their games.

Ubisoft also intends to focus 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 goal of building strong, evergreen game ecosystems, growing high-performing brands, and creating new IPs using cutting-edge technologies.

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. It will also encompass Ubisoft’s back-catalog and any new games currently in development or planned for the future. This move 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 is committed to building a more focused organization that will elevate its brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services, all aimed at delivering exceptional gaming experiences and creating value for shareholders and stakeholders.

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