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

Ubisoft has launched a new subsidiary centered around its Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, with a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This move comes shortly after the successful release of Assassin's Creed Shadows, which has already surpassed 3 million players. The launch of this new game follows a challenging period for Ubisoft, marked by several high-profile flops, layoffs, studio closures, and game cancellations. The pressure is immense on Assassin's Creed Shadows to perform well, especially after Ubisoft's share price reached an all-time low.

The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion), is headquartered in France and aims to develop "game ecosystems designed to become truly evergreen and multi-platform." Tencent holds a 25% stake in this venture. Ubisoft plans to leverage this investment to 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.

Ubisoft also intends to focus on its Ghost Recon and The Division franchises, aiming to further develop and expand its top-performing games.

Yves Guillemot, Ubisoft's co-founder and CEO, 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. 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."

He further emphasized the strategic importance of the new subsidiary, which will spearhead the development of the three major franchises and benefit from Tencent's minority investment. This move is aimed at crystallizing the value of Ubisoft's assets, strengthening its financial position, and setting the stage for long-term growth and success of these franchises. The subsidiary will operate with a dedicated and autonomous leadership team, focusing on transforming these brands into unique ecosystems.

Guillemot reiterated Ubisoft's commitment to building a more focused organization, empowering talented teams to elevate their brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services. The ultimate goal is to deliver enriching and memorable games that exceed player expectations and create superior value for shareholders and stakeholders.

The new subsidiary encompasses teams in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, working on the Rainbow Six, Assassin’s Creed, and Far Cry franchises, along with Ubisoft's back-catalog and any new games in development. This suggests that existing projects are secure, and there are no current indications of further layoffs.

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

Developing...