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

Ubisoft has announced the formation of a new subsidiary dedicated to its Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, bolstered by a €1.16 billion (approximately $1.25 billion) investment from Tencent. This news arrives shortly after the successful launch of Assassin's Creed Shadows, which has already attracted over 3 million players. The backdrop to this launch has been challenging for Ubisoft, marked by several high-profile flops, layoffs, studio closures, and game cancellations, placing immense pressure on the success of Assassin's Creed Shadows as the company's stock price reached a historic low.

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 holds a 25% stake in this venture. Ubisoft's strategy for this subsidiary includes enhancing the quality of narrative solo experiences, expanding multiplayer offerings, increasing the frequency of content releases, introducing free-to-play elements, and integrating more social features into their games.

Ubisoft also plans to concentrate on the development of its Ghost Recon and The Division franchises while continuing to expand its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, described this move as a pivotal step in the company's transformation, aimed at creating agile and ambitious operations. The new subsidiary will focus on turning the three major franchises into unique ecosystems, leveraging dedicated leadership and advanced technologies to drive long-term growth and success.

The subsidiary encompasses development teams across Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, and includes Ubisoft’s back-catalog as well as new games in development. This indicates that current projects are secure, with no immediate plans for further layoffs announced. The transaction is set to be completed by the end of 2025.

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