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 franchises, 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, putting immense pressure on the new title to perform well amidst the company's historically low share prices.

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, which include enhancing the quality of narrative solo experiences, expanding multiplayer offerings with more frequent content releases, introducing free-to-play elements, and integrating 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, aiming to grow its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, emphasized the significance of this new chapter, stating, "Today Ubisoft is opening a new chapter in its history." He highlighted the company's transformation and the strategic importance of the new subsidiary in building strong, evergreen game ecosystems, growing high-performing brands, and innovating with new IPs using cutting-edge technologies.

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 back-catalog and any new games in development or planned for the future. This suggests that existing projects will continue without immediate threat of further layoffs. The transaction is set to be completed by the end of 2025.

This strategic move by Ubisoft, with Tencent's investment, aims to solidify the company's position in the gaming industry, focusing on long-term growth and innovation across its key franchises.