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

Ubisoft has recently established a new subsidiary focused on its major franchises—Assassin’s Creed, Far Cry, and Tom Clancy's Rainbow Six—with a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This development comes shortly after the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The creation of this subsidiary follows a challenging period for Ubisoft, marked by several high-profile flops, layoffs, studio closures, and game cancellations, culminating in a historic low for the company's share price.

The new 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 the venture. Ubisoft plans to enhance the quality of narrative solo experiences, expand multiplayer offerings with frequent content updates, introduce free-to-play elements, and integrate more social features.

Ubisoft's strategy also includes a focus on its Ghost Recon and The Division franchises, alongside efforts to grow its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, stated that this move marks a new chapter in the company's history, aiming to transform Ubisoft's operating model to be more agile and ambitious. The goal is to build strong, evergreen game ecosystems, grow high-performing brands, and develop new IPs using cutting-edge technologies.

The subsidiary will encompass the development teams for Rainbow Six, Assassin’s Creed, and Far Cry located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, as well as Ubisoft's back-catalog and any new games in development. This suggests that existing projects are secure, with no immediate plans for further layoffs.

The transaction is expected to be completed by the end of 2025.

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