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

Ubisoft has taken a significant step by establishing a new subsidiary focused on its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six brands, backed by a €1.16 billion (approximately $1.25 billion) investment from Tencent. This strategic move comes right after the successful launch of Assassin's Creed Shadows, which has already attracted over 3 million players. The company has faced challenges with high-profile flops, layoffs, studio closures, and game cancellations in recent times, and the pressure is on to ensure the success of this new venture, especially after Ubisoft's share price reached an all-time low.

Valued at €4 billion (approximately $4.3 billion), the new subsidiary, which will be based in France, aims to create game ecosystems that are both evergreen and multi-platform. Tencent will hold a 25% stake in this venture. Ubisoft's goal is to enhance the quality of its narrative solo experiences, expand multiplayer offerings with more frequent content releases, introduce free-to-play elements, and integrate more social features into their games.

The company plans to concentrate on developing its Ghost Recon and The Division franchises while also nurturing its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, stated, “Today Ubisoft is opening a new chapter in its history.” He emphasized the transformation of Ubisoft’s operating model to be more agile and ambitious, focusing on building robust game ecosystems, growing high-performing brands, and creating new IPs with cutting-edge technologies.

The creation of this dedicated subsidiary, with Tencent as a minority investor, aims to unlock the value of Ubisoft's assets, strengthen its financial position, and foster long-term growth and success for these key franchises. With an autonomous leadership team, the subsidiary will work on transforming the Rainbow Six, Assassin’s Creed, and Far Cry brands into unique ecosystems.

Guillemot added, “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. Our goal is to deliver enriching, memorable games that exceed players' expectations and create superior value for our shareholders and other stakeholders.”

The new subsidiary encompasses development teams in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, working on the Rainbow Six, Assassin’s Creed, and Far Cry franchises. It also includes Ubisoft’s back-catalog and any new games currently in development or planned for the future. There is no indication of further layoffs, suggesting that existing projects are secure.

The transaction is expected to be finalized by the end of 2025. Ubisoft's strategic move with Tencent is poised to reshape its future, promising a new era of innovation and growth in the gaming industry.

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