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

Ubisoft has recently announced the creation of a new subsidiary company, focusing on its renowned franchises: Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. This strategic move comes with a substantial €1.16 billion (approximately $1.25 billion) investment from the Chinese tech giant Tencent. The launch of this subsidiary, valued at €4 billion (approximately $4.3 billion) and based in France, aims to build robust game ecosystems that are both evergreen and multi-platform, with Tencent holding a 25% stake.

This development follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. Ubisoft has faced significant challenges recently, including high-profile flops, layoffs, studio closures, and game cancellations. These setbacks led to Ubisoft's share price reaching an all-time low, placing immense pressure on the company to succeed with its latest releases.

According to Ubisoft, the new subsidiary will enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content updates, introduce free-to-play elements, and integrate additional social features. The company also plans to focus on developing its Ghost Recon and The Division franchises while continuing to grow 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.”

Guillemot emphasized the significance of the new subsidiary and Tencent's investment, noting, “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 further 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, 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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