Ubisoft has recently established a new subsidiary focused on its major franchises—Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six—with a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This move comes shortly after the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The backdrop to this launch includes a series of challenges for Ubisoft, such as high-profile flops, layoffs, studio closures, and game cancellations, which have put immense pressure on the company, especially after its share price reached an all-time low.

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's goal with this subsidiary is 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.

Ubisoft also plans to concentrate on the development of its Ghost Recon and The Division franchises while continuing to grow its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, emphasized that this move marks a new chapter for the company, aiming to transform its operating model to be more agile and ambitious. The focus will be on building strong, evergreen game ecosystems, growing high-performing brands, and creating new IPs using cutting-edge technologies.

The new subsidiary will encompass the teams working on 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. This suggests that existing projects are secure, and there are no immediate plans for further layoffs.

The transaction is expected to be finalized by the end of 2025. This strategic move is designed to strengthen Ubisoft's balance sheet, foster long-term growth and success for these key franchises, and deliver enriching, memorable games that meet and exceed player expectations while creating value for shareholders and stakeholders.

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