Ubisoft Creates 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 the Chinese conglomerate Tencent. This move comes on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The launch was critical for Ubisoft, given recent challenges including high-profile flops, layoffs, studio closures, and game cancellations, which had driven the company's share price to a historic low.

The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion) and based in France, aims to develop "game ecosystems designed to become truly evergreen and multi-platform." Tencent's investment grants them a 25% stake in this venture. Ubisoft emphasized that the subsidiary will enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content releases, introduce free-to-play elements, and integrate more social features into their games.

In addition to the new subsidiary, Ubisoft plans to concentrate on the development of its Ghost Recon and The Division franchises while continuing to grow its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, stated, “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.”

Guillemot further elaborated on the strategic vision, saying, “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. With the creation of a dedicated subsidiary that will spearhead development for three of our largest franchises and the onboarding of Tencent as a minority investor, we are crystalizing the value of our assets, strengthening our balance sheet, and creating the best conditions for these franchises’ long-term growth and success. With its dedicated and autonomous leadership team, it will focus on transforming these three brands into unique ecosystems.”

He concluded by reaffirming Ubisoft's commitment to building a more focused organization, stating, “We are committed to building a sharper, more focused organization—one where talented teams will take our brands to the next level, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services, all with the goal of delivering enriching, memorable games that exceed players' expectations, and create superior value for our shareholders and other stakeholders.”

The new subsidiary will encompass the teams working on the Rainbow Six, Assassin’s Creed, and Far Cry franchises, located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also include Ubisoft’s back-catalog and any new games currently in development or planned for the future. This suggests that existing projects are secure, and there have been no announcements regarding further layoffs.

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

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