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

Ubisoft has unveiled a strategic move by establishing a new subsidiary focused on its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six brands. This venture is backed by a significant €1.16 billion (approximately $1.25 billion) investment from the Chinese tech giant Tencent. This news follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed the 3 million player mark. Ubisoft faced several challenges leading up to this release, including high-profile flops, layoffs, studio closures, and game cancellations, which have placed immense pressure on the company, especially after its share price hit an all-time low.

The newly established 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 holds a 25% stake in this venture. Ubisoft has outlined that the subsidiary 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.

Ubisoft plans to concentrate on its Ghost Recon and The Division franchises while continuing to bolster 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. 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 elaborated that the new subsidiary will spearhead development for three of Ubisoft's largest franchises and, with Tencent as a minority investor, will enhance the company's balance sheet and set the stage for long-term growth and success. The subsidiary will operate with a dedicated and autonomous leadership team, aiming to transform these three brands into unique ecosystems. Ubisoft is committed to creating a more focused organization that will drive its brands to new heights, accelerate emerging franchises, and lead innovation in next-generation technologies and services, all with the goal of delivering exceptional gaming experiences that surpass player expectations and create substantial value for shareholders and stakeholders.

The new subsidiary encompasses the development teams for the Rainbow Six, Assassin’s Creed, and Far Cry franchises located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, along with Ubisoft's back-catalog and any new games currently in development or planned for the future. This suggests that existing projects are secure, with no further layoffs announced at this time. The transaction is slated for completion by the end of 2025.

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