Embattled Ubisoft Forms Subsidiary for IPs Like Assassin's Creed, Far Cry and Rainbow Six With the Help of €1.16 Billion Tencent Investment

Ubisoft has made a strategic move by launching a new subsidiary dedicated to its flagship franchises—Assassin’s Creed, Far Cry, and Tom Clancy's Rainbow Six. This initiative comes with a significant investment of €1.16 billion (approximately $1.25 billion) from the Chinese tech giant Tencent, valuing the new entity at €4 billion (approximately $4.3 billion). The subsidiary will be headquartered in France, and Tencent will hold a 25% stake in it.

This announcement follows the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. Ubisoft has faced numerous challenges recently, including high-profile flops, layoffs, studio closures, and game cancellations, which led to the company's share price reaching an all-time low. The pressure is now on Assassin's Creed Shadows to perform well, and this new subsidiary is part of Ubisoft's broader strategy to recover and grow.

The new subsidiary aims to develop "game ecosystems designed to become truly evergreen and multi-platform." Ubisoft's goal is 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. Additionally, Ubisoft will continue to focus on its Ghost Recon and The Division franchises, alongside efforts to grow its top-performing games.

Yves Guillemot, co-founder and CEO of Ubisoft, 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 importance of the new subsidiary: “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.”

Guillemot also highlighted Ubisoft's commitment to building a more focused organization: “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 developing Rainbow Six, Assassin’s Creed, and Far Cry in locations such as 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. There are no indications of further layoffs associated with this move, suggesting that existing projects will remain secure.

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

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