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

Ubisoft has announced the formation of a new subsidiary centered around its flagship franchises—Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six—with a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, a major Chinese corporation. This news follows closely on the heels of the release of Assassin's Creed Shadows, which has already surpassed 3 million players. This comes at a critical time for Ubisoft, which has faced a series of setbacks including high-profile flops, layoffs, studio closures, and game cancellations, all contributing to the company's share price hitting a historic low. The success of Assassin's Creed Shadows is crucial for Ubisoft.

The new subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to create robust, multi-platform game ecosystems that are designed to be evergreen. Tencent will hold a 25% stake in this venture. Ubisoft's statement emphasizes that the new company will enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content updates, introduce free-to-play elements, and incorporate more social features into their games.

Ubisoft also plans to concentrate on the development of its Ghost Recon and The Division franchises while continuing to bolster its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, described the move as a pivotal moment in the company's history, aimed at transforming Ubisoft's operational model to be more agile and ambitious. He stressed the commitment to building strong, sustainable game ecosystems, growing high-performing brands, and innovating with new intellectual properties using cutting-edge technologies.

The creation of this subsidiary is intended to solidify the value of Ubisoft's assets, strengthen its financial position, and set the stage for the long-term growth and success of the three major franchises. It will operate with a dedicated and autonomous leadership team, focusing on transforming these brands into unique ecosystems. Guillemot reiterated Ubisoft's dedication to becoming a more focused organization, capable of elevating its brands, accelerating the growth of emerging franchises, and leading innovation in next-generation technologies and services to deliver exceptional gaming experiences that meet and exceed player expectations while creating value for shareholders and 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, along with 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 finalized by the end of 2025.

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