Ubisoft has taken a significant step by establishing a new subsidiary dedicated to its flagship franchises—Assassin’s Creed, Far Cry, and Tom Clancy's Rainbow Six. This move comes with a hefty €1.16 billion (approximately $1.25 billion) investment from Tencent, the Chinese tech giant. The newly formed company, valued at €4 billion (about $4.3 billion), will be headquartered in France and is designed to develop "game ecosystems" that are both evergreen and multi-platform, with Tencent holding a 25% stake.
This announcement follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The launch is critical for Ubisoft, which has faced numerous challenges including high-profile flops, layoffs, studio closures, and game cancellations. These setbacks led to the company's share price reaching an all-time low, putting immense pressure on the success of Assassin's Creed Shadows.
Ubisoft's vision for the new 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 social features. The company aims to focus on growing its top-performing games and developing its Ghost Recon and The Division franchises further.
Yves Guillemot, Ubisoft's co-founder and CEO, 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 subsidiary's role in building strong, sustainable game ecosystems, enhancing high-performing brands, and leveraging emerging technologies.
The new subsidiary will encompass teams from Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, who are currently working on the Rainbow Six, Assassin’s Creed, and Far Cry franchises. It will also include Ubisoft's back-catalog and any new games in development. This suggests that existing projects will continue without interruption, and there have been no announcements regarding further layoffs.
The deal is expected to be finalized by the end of 2025. This strategic move not only strengthens Ubisoft's balance sheet but also aims to ensure the long-term growth and success of these iconic franchises by fostering an environment where innovation and talent can thrive.
