Ubisoft Launches New Subsidiary for Major IPs with Tencent's €1.16B Investment

Ubisoft has announced the formation of a new subsidiary company centered around its flagship franchises: Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. This venture has secured a significant €1.16 billion (approximately $1.25 billion) investment from the Chinese conglomerate Tencent, highlighting the strategic importance of these brands.

This announcement follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The backdrop to this news, however, includes a series of challenges for Ubisoft, including several high-profile flops, layoffs, studio closures, and game cancellations. These setbacks have put considerable 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 create "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture.

Ubisoft has outlined ambitious plans for this new entity, stating that it will enhance narrative solo experiences, expand multiplayer offerings, increase the frequency of content releases, introduce free-to-play elements, and incorporate more social features. The company also plans to focus 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 the significance of this move, stating, "Today Ubisoft is opening a new chapter in its history." He highlighted the company's transformation and the creation of the subsidiary as foundational steps towards a more agile and ambitious operating model. Guillemot stressed the goal of building strong, evergreen game ecosystems, growing high-performing brands, and developing new IPs using cutting-edge technologies.

The new subsidiary will encompass the teams currently working on Rainbow Six, Assassin’s Creed, and Far Cry in locations such as Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also manage Ubisoft’s back-catalog and any new games in development or planned for the future. This suggests that existing projects will remain secure, and no further layoffs are currently anticipated.

The transaction is slated for completion by the end of 2025, marking a pivotal moment for Ubisoft as it seeks to revitalize its core franchises and secure its future in the gaming industry.

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