Ubisoft has announced the creation of a new subsidiary dedicated to its Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six franchises, with a significant investment of €1.16 billion (approximately $1.25 billion) from Tencent. This news follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The backdrop to this launch has been challenging for Ubisoft, marked by high-profile flops, layoffs, studio closures, and game cancellations, culminating in a historic low for the company's share price. The pressure on Assassin's Creed Shadows to succeed is palpable.
The newly established 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's strategy for the subsidiary includes enhancing the quality of narrative solo experiences, expanding multiplayer offerings with more frequent content releases, introducing free-to-play elements, and integrating social features.
In addition to these three major franchises, Ubisoft plans to focus on developing its Ghost Recon and The Division series, alongside nurturing its top-performing games. Yves Guillemot, Ubisoft's co-founder and CEO, emphasized that this move represents a new chapter for the company, aimed at transforming its operating model to be both agile and ambitious. The goal is to build strong, evergreen game ecosystems, grow high-performing brands, and innovate with new IPs using cutting-edge technologies.
The 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 future projects. This suggests that current projects are secure, and there are no immediate plans for further layoffs. The transaction is set to be finalized by the end of 2025.
This strategic move by Ubisoft, backed by Tencent's investment, is designed to strengthen its balance sheet, drive long-term growth and success for these key franchises, and deliver enriching, memorable gaming experiences that exceed player expectations while creating value for shareholders and stakeholders.
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