Ubisoft Launches 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 franchises, backed by a substantial €1.16 billion (approximately $1.25 billion) investment from Tencent. This strategic move comes at a pivotal time for Ubisoft, following the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The company has faced significant challenges, including high-profile flops, layoffs, studio closures, and game cancellations, which have driven its share price to an all-time low. The pressure on Assassin's Creed Shadows to perform well is immense.

Valued at €4 billion (approximately $4.3 billion) and headquartered in France, this new subsidiary aims to develop "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture. Ubisoft's goals for the subsidiary include enhancing the quality of narrative solo experiences, expanding multiplayer offerings with more frequent content releases, introducing free-to-play elements, and integrating social features into their games.

Ubisoft plans to concentrate on developing its Ghost Recon and The Division franchises, as well as nurturing its top-performing titles. 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 creation of a dedicated subsidiary to spearhead development for these three major franchises. Guillemot highlighted the importance of building strong, sustainable game ecosystems and leveraging emerging technologies to grow high-performing brands and create new IPs.

The new subsidiary will include development teams based in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, encompassing Ubisoft's back-catalog and any new games currently in development or planned for the future. This indicates that existing projects are secure, with no immediate plans for further layoffs. The deal is expected to be finalized by the end of 2025.

This partnership with Tencent and the formation of the subsidiary represent a significant step towards revitalizing Ubisoft's operations and ensuring the long-term success of its flagship franchises.