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

Ubisoft has announced the creation of a new subsidiary company centered around its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, backed by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent, the Chinese tech giant. This move comes shortly after the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The launch follows a challenging period for Ubisoft, marked by high-profile flops, layoffs, studio closures, and game cancellations, putting immense pressure on the new title to perform well amidst a historic low in the company's share price.

The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to develop "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 the subsidiary, stating it will enhance the quality of narrative solo experiences, expand multiplayer offerings with more frequent content releases, introduce free-to-play elements, and incorporate more social features into their games.

In addition to these three major franchises, Ubisoft intends to focus on the development of its Ghost Recon and The Division series, while also aiming to grow its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, emphasized the significance of this new chapter, stating, "Today Ubisoft is opening a new chapter in its history." He highlighted the company's transformation and the goal of building strong, evergreen game ecosystems, growing high-performing brands, and creating new IPs using cutting-edge technologies.

The new subsidiary will include development teams from Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, covering the Rainbow Six, Assassin’s Creed, and Far Cry franchises, as well as Ubisoft’s back-catalog and any new games in development. This suggests that existing projects will continue without immediate threat of further layoffs. The transaction is set to be completed by the end of 2025.

This strategic move is designed to strengthen Ubisoft's balance sheet, foster long-term growth and success for these key franchises, and create a more agile and focused organization. The goal is to deliver enriching, memorable games that exceed player expectations and generate superior value for shareholders and stakeholders.

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