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

Ubisoft has established a new subsidiary, fueled by a significant €1.16 billion ($1.25 billion) investment from Chinese tech giant Tencent. This announcement follows the successful launch of Assassin's Creed Shadows, which has already attracted over 3 million players. In the lead-up to this release, Ubisoft faced numerous challenges, including high-profile failures, workforce reductions, studio closures, and canceled projects, resulting in considerable pressure to deliver a breakthrough.

Valued at €4 billion ($4.3 billion), the subsidiary will operate from France and concentrate on creating game ecosystems designed to be enduring and accessible across multiple platforms. Tencent’s stake represents 25% ownership.

According to Ubisoft, this new entity, bolstered by enhanced funding and expanded creative capabilities, aims to elevate the quality of narrative-driven single-player experiences, amplify multiplayer content releases, incorporate free-to-play elements, and enhance social interactions within games.

Ubisoft plans to prioritize the growth of its Ghost Recon and The Division franchises while expanding its most successful titles.

Yves Guillemot, Ubisoft’s co-founder and CEO, stated: “This marks a pivotal moment in Ubisoft’s evolution. By restructuring our operational framework, we aim to strike a balance between agility and ambition. Our focus lies in crafting robust game ecosystems capable of sustaining long-term engagement, nurturing top-tier franchises, and incubating innovative intellectual properties through cutting-edge technology.”

Guillemot emphasized that with the establishment of this specialized subsidiary, led by a separate management team, the company intends to transform these three franchises into distinct ecosystem hubs. The goal is to foster a leaner, more targeted organizational structure where skilled teams can elevate brand potential, accelerate emerging projects, and pioneer advancements in future technologies.

From a practical standpoint, the subsidiary encompasses the Montreal, Quebec; Sherbrooke; Saguenay; Barcelona; and Sofia-based teams responsible for developing the Rainbow Six, Assassin’s Creed, and Far Cry franchises, along with Ubisoft’s legacy portfolio and upcoming projects. Existing initiatives appear secure, and no immediate layoffs have been announced.

The deal is anticipated to conclude by the end of 2025.