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

Ubisoft has announced the creation of a new subsidiary focused on its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six brands, backed by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This move comes amidst the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. However, the company faced challenges with several high-profile flops, layoffs, studio closures, and game cancellations leading up to this release, putting immense pressure on Assassin's Creed Shadows to perform well, especially after Ubisoft's share price reached an all-time low.

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 this venture. Ubisoft plans to enhance narrative solo experiences, expand multiplayer offerings with more frequent content releases, introduce free-to-play elements, and integrate additional social features.

Yves Guillemot, Ubisoft's co-founder and CEO, stated, "Today Ubisoft is opening a new chapter in its history." He emphasized the transformation and the goal to create agile and ambitious game ecosystems, focusing on high-performing brands and new IPs using cutting-edge technologies. The subsidiary will manage 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 future projects. This suggests that existing projects are secure, and there are no immediate plans for further layoffs.

The transaction is set to be finalized by the end of 2025, marking a significant step in Ubisoft's strategy to bolster its major franchises and ensure long-term growth and success.

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