Ubisoft has established a new subsidiary centered around its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, bolstered by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, a major Chinese corporation.
This announcement follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. Ubisoft has faced a series of challenges, including high-profile flops, layoffs, studio closures, and game cancellations, leading up to the release of Assassin's Creed Shadows. Amidst these struggles, the company's share price hit a historic low, placing immense pressure on the new title to perform well.
The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to create game ecosystems that are "truly evergreen and multi-platform." Tencent holds a 25% stake in this venture.
Ubisoft elaborated that, with increased investment and enhanced creative capabilities, the subsidiary will focus on elevating the quality of narrative solo experiences, expanding multiplayer offerings with more frequent content updates, introducing free-to-play elements, and enhancing social features.
In addition to these initiatives, Ubisoft plans to concentrate on developing its Ghost Recon and The Division franchises while nurturing its top-performing games.
“Today Ubisoft is opening a new chapter in its history,” stated Yves Guillemot, co-founder and CEO of Ubisoft. “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. We are focused on building strong game ecosystems designed to become evergreen, growing high-performing brands and creating new IPs powered by cutting-edge and emerging technologies.With the establishment of this dedicated subsidiary, which will lead the development of three of our largest franchises, and the strategic partnership with Tencent as a minority investor, we are crystallizing the value of our assets, strengthening our balance sheet, and setting the stage for the long-term growth and success of these franchises. The subsidiary will operate with a dedicated and autonomous leadership team, concentrating on transforming these three brands into unique ecosystems.
We are committed to building a sharper, more focused organization—one where talented teams will elevate our brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services. Our goal is to deliver enriching, memorable games that exceed players' expectations and create superior value for our shareholders and other stakeholders.”
In practical terms, the new subsidiary encompasses the teams currently working on the Rainbow Six, Assassin’s Creed, and Far Cry franchises, located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. This also includes Ubisoft’s back-catalog and any new games in development or planned for the future. This suggests that existing projects are secure, and there have been no announcements regarding further layoffs.
The transaction is slated to be finalized by the end of 2025.
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