Ubisoft Launches New Subsidiary for Major IPs with €1.16B Tencent Investment
Ubisoft has established a new subsidiary, leveraging its iconic franchises—Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six—with an impressive €1.16 billion ($1.25 billion) investment from global tech giant Tencent. This announcement follows the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. In the lead-up to this release, Ubisoft faced significant challenges, including high-profile failures, layoffs, studio closures, and canceled projects, leading to immense pressure to revitalize its brand. The company’s stock price had dipped to record lows, making the success of Shadows crucial for its future.
This newly formed subsidiary, valued at €4 billion ($4.3 billion) and headquartered in France, aims to develop enduring, multi-platform game ecosystems. Tencent’s stake represents 25% of the subsidiary. Ubisoft emphasized that this initiative will enhance creative capabilities and prioritize higher-quality narrative-driven single-player experiences, expand multiplayer content through regular updates, introduce free-to-play elements, and incorporate advanced social features.
Yves Guillemot, Ubisoft’s co-founder and CEO, stated, “This marks a pivotal moment in Ubisoft’s history. By accelerating our transformation, we aim to adopt an agile yet ambitious approach. Our focus lies in constructing resilient ecosystems for our brands, fostering growth across top-tier franchises, and innovating with cutting-edge technologies.”
The subsidiary will house teams working on the Rainbow Six, Assassin’s Creed, and Far Cry franchises in locations such as Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, along with Ubisoft’s extensive back catalog and ongoing projects. While no immediate layoffs are anticipated, details regarding future plans remain unconfirmed. Completion of the deal is expected by the end of 2025.
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