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

Ubisoft has established a new subsidiary focused on its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, backed by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This development follows the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The announcement comes amidst Ubisoft's challenges, including high-profile flops, layoffs, studio closures, and game cancellations, which have placed immense pressure on Assassin's Creed Shadows to perform well, especially after the company's share price reached an all-time low.

The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to create game ecosystems that are both evergreen and multi-platform. Tencent will hold a 25% stake in this venture. Ubisoft's goal is to 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.

Ubisoft plans to concentrate 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. 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."

Guillemot emphasized the company's commitment to building robust 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, responsible for the development of Rainbow Six, Assassin’s Creed, and Far Cry, along with Ubisoft’s back-catalog and upcoming projects. This suggests that existing projects will remain secure, with no immediate plans for further layoffs.

The transaction is slated to be finalized by the end of 2025. As Ubisoft continues to evolve, this strategic move aims to solidify its position in the gaming industry, promising innovation and growth for its flagship franchises.