Ubisoft Creates 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—backed by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This move comes on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The timing is critical for Ubisoft, which has faced challenges including high-profile flops, layoffs, studio closures, and game cancellations, leading to a historic low in its share price.

The new subsidiary, valued at €4 billion (approximately $4.3 billion) and based in France, aims to build "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 its narrative solo experiences, expand its multiplayer offerings with more frequent content releases, introduce free-to-play elements, and integrate more social features.

Ubisoft's CEO, Yves Guillemot, described this as a "new chapter" in the company's history, emphasizing the transformation and focus on building strong, evergreen game ecosystems. The subsidiary will spearhead development for the three major franchises, utilizing teams in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also manage Ubisoft's back-catalog and any new games in development.

This strategic move is expected to strengthen Ubisoft's balance sheet and support the long-term growth and success of these franchises. The company remains committed to developing its Ghost Recon and The Division franchises while growing its top-performing games. The transaction is slated for completion by the end of 2025, with no immediate indications of further layoffs affecting existing projects.

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