Ubisoft has recently announced the formation of a new subsidiary company focused on its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, backed by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This news follows the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. This comes at a crucial time for Ubisoft, which has faced challenges including high-profile flops, layoffs, studio closures, and game cancellations, leading to a historic low in its share price.
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 will hold a 25% stake in this venture. Ubisoft plans to enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content releases, introduce free-to-play elements, and integrate more social features into its games.
In addition to the three major franchises, Ubisoft will continue to focus on developing its Ghost Recon and The Division series, while also aiming to grow its top-performing games. The company's teams in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia will be part of this new subsidiary, which will also manage Ubisoft's back-catalog and any new games currently in development or planned for the future.
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." He emphasized the company's commitment to building strong, evergreen game ecosystems, growing high-performing brands, and creating new IPs using cutting-edge technologies.
The creation of this subsidiary and the partnership with Tencent are seen as moves to strengthen Ubisoft's balance sheet and ensure the long-term growth and success of its key franchises. The transaction is expected to be completed by the end of 2025.
This strategic move appears to safeguard existing projects, with no immediate plans for further layoffs. Ubisoft aims to build a more focused organization that will elevate its brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services, ultimately delivering enriching, memorable games that meet and exceed player expectations while creating value for shareholders and stakeholders.
