Ubisoft has made a strategic move by creating a new subsidiary focused on its major franchises—Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six. This bold step comes with a significant €1.16 billion (approximately $1.25 billion) investment from the Chinese conglomerate Tencent, underscoring the high stakes involved. This news arrives shortly after the successful launch of Assassin's Creed Shadows, which has already attracted over 3 million players. However, Ubisoft's recent history has been marred by high-profile flops, layoffs, studio closures, and game cancellations, leading to intense pressure on the new title to perform well, especially after the company's share price hit a historic low.
The newly established subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, is designed to create robust, multi-platform game ecosystems that are meant to be "evergreen." Tencent will hold a 25% stake in this venture. Ubisoft aims to enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content updates, introduce free-to-play elements, and integrate additional social features.
Moving forward, Ubisoft plans to concentrate on its Ghost Recon and The Division franchises, alongside efforts to boost the performance of its leading titles. Yves Guillemot, Ubisoft's co-founder and CEO, heralded this move as the start of a new chapter for the company. He emphasized the transformation and agility this new operating model will bring, with a focus on building strong, lasting game ecosystems, nurturing top-performing brands, and innovating with cutting-edge technologies.
The creation of this subsidiary, coupled with Tencent's investment, is intended to solidify the value of Ubisoft's assets, strengthen its financial position, and set the stage for long-term growth and success of these key franchises. The subsidiary will operate autonomously with dedicated leadership, aiming to elevate these brands into unique ecosystems.
Guillemot reiterated Ubisoft's commitment to becoming a more focused and innovative organization, with the goal of delivering exceptional games that surpass player expectations and generate significant value for shareholders and stakeholders alike.
In practical terms, this new subsidiary encompasses the development teams for Rainbow Six, Assassin's Creed, and Far Cry, located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It also includes Ubisoft's back-catalog and any new games in development or planned for the future. This suggests that current projects are secure, and there are no immediate plans for further layoffs.
The transaction is slated to be finalized by the end of 2025.
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