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

Ubisoft has announced the creation of a new subsidiary, fueled by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, the Chinese tech giant. This move comes on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The timing is critical for Ubisoft, which faced a series of high-profile flops, layoffs, studio closures, and game cancellations leading up to this release. With the company's share price at an all-time low, the pressure on Assassin's Creed Shadows to perform was immense.

This new subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, will concentrate on developing "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in the venture. Ubisoft aims to leverage this investment to enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content releases, introduce free-to-play elements, and incorporate more social features into their games.

Ubisoft has also stated that it will "focus" on developing its Ghost Recon and The Division franchises while continuing to grow its top-performing titles. Yves Guillemot, Ubisoft's co-founder and CEO, expressed that this marks a "new chapter" for the company, emphasizing a transformation that will allow Ubisoft to be "both agile and ambitious." The goal is to build strong, evergreen game ecosystems, enhance high-performing brands, and create new IPs using cutting-edge and emerging technologies.

The new subsidiary will oversee the development of the Rainbow Six, Assassin’s Creed, and Far Cry franchises, with teams located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also manage Ubisoft's back-catalog and any new games currently in development or planned for the future, suggesting that existing projects are secure. There have been no announcements regarding further layoffs at this time.

The deal with Tencent is expected to be finalized by the end of 2025. This strategic partnership aims to strengthen Ubisoft's balance sheet, foster long-term growth and success for these key franchises, and ultimately deliver exceptional gaming experiences that exceed player expectations while creating value for shareholders and stakeholders.

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