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

Ubisoft has recently established a new subsidiary centered around its popular 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 leading Chinese conglomerate. This move follows the successful launch of Assassin’s Creed Shadows, which has already surpassed 3 million players. Ubisoft has faced challenges including high-profile flops, layoffs, studio closures, and game cancellations leading up to this release, intensifying the pressure on Assassin’s Creed Shadows to perform well, especially after the company’s share price reached a historic low.

The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to develop "game ecosystems designed to become truly evergreen and multi-platform." Tencent holds a 25% stake in this venture. Ubisoft plans to enhance the quality of narrative solo experiences, expand multiplayer offerings, increase the frequency of content releases, introduce free-to-play elements, and integrate more social features into their games.

Ubisoft also intends to focus on the development of its Ghost Recon and The Division franchises and aims to further grow its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, stated that this initiative marks a new chapter in the company's history. He emphasized that the transformation will enable Ubisoft to be more agile and ambitious, concentrating on building robust game ecosystems that are evergreen and leveraging high-performing brands and new IPs with advanced technologies.

Guillemot highlighted that the new subsidiary, with its dedicated and autonomous leadership, will transform the three key franchises into unique ecosystems. The goal is to create a more focused organization that will elevate their brands, accelerate the growth of emerging franchises, and drive innovation in next-generation technologies and services. This strategic move aims to deliver enriching, memorable gaming experiences that exceed players' expectations and create substantial value for shareholders and stakeholders.

The subsidiary will include 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 in development. This suggests that existing projects will continue safely, with no immediate plans for further layoffs. The transaction is expected to be completed by the end of 2025.

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