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

Ubisoft has launched a new subsidiary company focused on its renowned Assassin’s Creed, Far Cry, and Tom Clancy's Rainbow Six brands, with a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This development follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The release comes after Ubisoft faced a series of challenges including high-profile flops, layoffs, studio closures, and game cancellations, leading to a historic low in the company's share price.

The newly established subsidiary, valued at €4 billion (approximately $4.3 billion) and based in France, aims to create game ecosystems that are "truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture. Ubisoft plans to enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content releases, introduce free-to-play elements, and integrate additional social features.

Furthermore, Ubisoft intends 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." He emphasized the focus on building strong, evergreen game ecosystems, growing high-performing brands, and creating new IPs using cutting-edge technologies.

The new subsidiary will include development teams from Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, working on the Rainbow Six, Assassin’s Creed, and Far Cry franchises. It will also encompass Ubisoft's back-catalog and any new games currently in development or planned for the future, suggesting that existing projects are secure with no further layoffs announced at this time.

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

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