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

Ubisoft has launched a new subsidiary company centered around its iconic 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 the Chinese tech giant Tencent. This move comes shortly after the successful launch of Assassin's Creed Shadows, which has already attracted over 3 million players. Ubisoft faced numerous challenges including high-profile flops, layoffs, studio closures, and game cancellations before the release of Assassin's Creed Shadows, placing immense pressure on the game to perform well amid a historically low share price.

The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to create "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture. Ubisoft stated that the subsidiary will enhance the quality of its narrative solo experiences, expand multiplayer offerings with more frequent content updates, introduce free-to-play elements, and incorporate more social features into their games.

Ubisoft also plans to concentrate on developing its Ghost Recon and The Division franchises while continuing to grow its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, emphasized the significance of this new chapter, saying, “Today Ubisoft is opening a new chapter in its history. As we accelerate the company’s transformation, this is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious. We are focused on building strong game ecosystems designed to become evergreen, growing high-performing brands and creating new IPs powered by cutting-edge and emerging technologies.”

Guillemot further explained that the new subsidiary will manage the development of the three major franchises—Rainbow Six, Assassin’s Creed, and Far Cry—from various global studios including those in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. This includes Ubisoft’s back-catalog and any new games in development or planned for the future, suggesting that current projects are secure, with no immediate plans for further layoffs.

The deal with Tencent is expected to close by the end of 2025, marking a significant step towards long-term growth and success for these beloved franchises.

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