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

Ubisoft has recently announced the establishment of a new subsidiary company, leveraging its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises. This strategic move is backed by a substantial €1.16 billion (approximately $1.25 billion) investment from the Chinese tech giant Tencent.

This development arrives shortly after the successful launch of Assassin's Creed Shadows, which has already attracted over 3 million players. Ubisoft's recent challenges, including several high-profile flops, layoffs, studio closures, and game cancellations, have put immense pressure on the company, especially as its share price reached an all-time low. The success of Assassin's Creed Shadows is crucial for Ubisoft's recovery and future growth.

The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to create game ecosystems that are designed to be evergreen and accessible across multiple platforms. Tencent holds a 25% stake in this venture.

Ubisoft's statement highlighted that the subsidiary will enhance the quality of narrative-driven solo experiences, expand multiplayer offerings with more frequent content updates, introduce free-to-play elements, and integrate social features into their games. Additionally, Ubisoft plans to focus on developing its Ghost Recon and The Division franchises while continuing to grow its top-performing titles.

Yves Guillemot, Ubisoft's co-founder and CEO, emphasized the significance of this new chapter for the company. He 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. We are focused on building strong game ecosystems designed to become evergreen, growing high-performing brands and creating new IPs powered by cutting-edge and emerging technologies."

Guillemot further explained that the subsidiary will spearhead development for the three major franchises, benefiting from dedicated and autonomous leadership. This move is intended to solidify the value of Ubisoft's assets, bolster its financial position, and set the stage for long-term growth and success of these franchises. The goal is to create a more focused organization that will elevate their brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services. Ultimately, Ubisoft aims to deliver enriching, memorable games that exceed player expectations and generate superior 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, along with Ubisoft's existing back-catalog and any new games in development or planned for the future. This suggests that current projects will continue without interruption, and no further layoffs are anticipated at this time.

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

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