Ubisoft has established a new subsidiary built around its blockbuster franchises Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six, backed by a €1.16 billion (approximately $1.25 billion) investment from Chinese tech giant Tencent.
This announcement arrives shortly after the successful debut of Assassin's Creed Shadows, which has already surpassed 3 million players. In the lead-up to the game's launch, Ubisoft faced several setbacks including notable flops, staff reductions, studio shutdowns, and cancelled projects. With the company’s stock price hitting a record low, the pressure for a strong performance is immense.
Valued at €4 billion (nearly $4.3 billion) and headquartered in France, the new entity will specialize in "building game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25 percent ownership stake.
Ubisoft further explained: “With enhanced investment and expanded creative capabilities, the subsidiary will elevate the quality of narrative-driven solo games, enrich multiplayer content with more frequent updates, incorporate free-to-play elements, and deepen social integration.”
The company also stated it will “focus” on advancing its Ghost Recon and The Division series while expanding its top-performing live games.
“Today marks the beginning of a new era for Ubisoft,” commented Yves Guillemot, the company’s co-founder and CEO.
“This crucial step in our transformation will make Ubisoft more agile and ambitious. Our goal is to develop robust game ecosystems that sustain long-term engagement, grow our most successful brands, and create new IPs using cutting-edge technologies.
“By forming a dedicated subsidiary to pilot three of our biggest franchises and welcoming Tencent as a strategic minority investor, we are unlocking the value of our assets, strengthening our finances, and ensuring the continued growth of these series. With its own dedicated leadership, the new subsidiary will reshape these brands into distinct, enduring ecosystems.
“We are committed to a more streamlined and focused organization—one where skilled teams elevate our brands, accelerate emerging franchises, and drive innovation in next-generation tech and services. Ultimately, we aim to deliver unforgettable, high-quality games that surpass player expectations and create lasting value for our shareholders and partners.”
So, what does this deal actually mean in practice? The subsidiary encompasses all teams working on Rainbow Six, Assassin’s Creed, and Far Cry from studios in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, along with Ubisoft’s back catalog and upcoming titles. For now, current projects appear secure, and no further layoffs have been announced.
The transaction is projected to conclude by the end of 2025.
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