Ubisoft has launched a new subsidiary company centered around its renowned franchises—Assassin’s Creed, Far Cry, and Tom Clancy's Rainbow Six—backed by a hefty €1.16 billion (approximately $1.25 billion) investment from Chinese tech giant Tencent. This move arrives amidst the successful release of Assassin's Creed Shadows, which has already surpassed 3 million players. The launch follows a challenging period for Ubisoft, marked by high-profile flops, layoffs, studio closures, and game cancellations. With Ubisoft's share price hitting an all-time low, there's significant pressure on Assassin's Creed Shadows to deliver strong results.

Valued at €4 billion (approximately $4.3 billion), the new subsidiary will be based in France and focus on creating "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture. Ubisoft aims to enhance narrative solo experiences, expand multiplayer offerings with frequent content updates, introduce free-to-play elements, and add more social features to its games. Additionally, Ubisoft plans to concentrate on developing its Ghost Recon and The Division franchises, while also growing its top-performing titles.

“Today Ubisoft is opening a new chapter in its history,” stated Yves Guillemot, co-founder and CEO of Ubisoft. He emphasized the company's transformation and the establishment of a new operating model to enhance agility and ambition. Guillemot highlighted the focus on developing strong, evergreen game ecosystems, nurturing high-performing brands, and pioneering new IPs with cutting-edge technologies.

The creation of this dedicated subsidiary, supported by Tencent's minority investment, is intended to solidify the value of Ubisoft's assets, bolster its financial position, and set the stage for long-term growth and success of the three major franchises. The subsidiary will have an autonomous leadership team tasked with transforming these brands into unique ecosystems.

Ubisoft is committed to refining its organizational structure to empower talented teams to elevate its brands, accelerate the growth of emerging franchises, and spearhead innovation in next-generation technologies and services. The goal is to deliver exceptional, memorable gaming experiences that surpass player expectations and generate significant value for shareholders and stakeholders.

In practical terms, the new subsidiary encompasses teams working on Rainbow Six, Assassin’s Creed, and Far Cry in locations such as Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It also includes Ubisoft's back-catalog and any new games in development. This suggests that existing projects will continue unaffected, with no immediate plans for further layoffs. The transaction is expected to be finalized by the end of 2025.

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