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

Ubisoft has announced the creation of a new subsidiary company centered around its renowned 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, the Chinese tech giant. 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 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 and help steer Ubisoft back to success.

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 has outlined ambitious plans for the subsidiary, stating it will enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content releases, introduce free-to-play elements, and incorporate more social features into their games.

In addition to these three major franchises, Ubisoft plans to focus on the development of its Ghost Recon and The Division series, while also aiming to grow its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, emphasized the significance of this new chapter in the company's history, stating, "Today Ubisoft is opening a new chapter in its history." He highlighted the transformation and the new operating model that will allow Ubisoft to be both agile and ambitious, focusing on building strong, evergreen game ecosystems, growing high-performing brands, and creating new IPs with cutting-edge technologies.

Guillemot further explained that the new subsidiary, with its dedicated and autonomous leadership, will transform the three key brands into unique ecosystems. The goal is to build a more focused organization that can elevate these brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services. This, he believes, will deliver enriching, memorable games that exceed players' expectations and create superior value for shareholders and stakeholders.

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, along with Ubisoft’s back-catalog and any new games in development or planned for the future. This suggests that existing projects are secure, and there are no immediate plans for further layoffs. The transaction is expected to be finalized by the end of 2025.

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