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

Ubisoft has recently 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 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 several high-profile flops, layoffs, studio closures, and game cancellations, which led to the company's share price reaching an all-time low. The pressure is now on Assassin's Creed Shadows to perform well and help stabilize the company's fortunes.

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 plans 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 into their games.

In addition to the new subsidiary, Ubisoft will continue to focus on developing its Ghost Recon and The Division franchises and further grow its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, stated, "Today Ubisoft is opening a new chapter in its history." He emphasized the company's transformation and the goal of building strong, evergreen game ecosystems, growing high-performing brands, and creating new IPs using cutting-edge technologies.

The new subsidiary will include development teams from Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, working on the Rainbow Six, Assassin’s Creed, and Far Cry franchises. It will also encompass Ubisoft’s back-catalog and any new games currently in development or planned for the future. This suggests that existing projects are secure, and there are no immediate plans for further layoffs.

The transaction is expected to be finalized by the end of 2025. Ubisoft remains committed to building a more focused organization, aiming to elevate its brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services. The ultimate goal is to deliver enriching, memorable games that exceed player expectations and create superior value for shareholders and stakeholders.

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