Ubisoft has announced the creation of a new subsidiary focused on its Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six brands, backed by a significant €1.16 billion (approximately $1.25 billion) investment from Tencent. This move comes shortly after the successful launch of Assassin's Creed Shadows, which has already attracted over 3 million players. The announcement follows a challenging period for Ubisoft, marked by high-profile flops, layoffs, studio closures, and game cancellations, which led to the company's share price reaching an all-time low. The pressure is now on Assassin's Creed Shadows to deliver strong results.

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 this subsidiary includes enhancing the quality of narrative solo experiences, expanding multiplayer offerings with more frequent content releases, introducing free-to-play elements, and incorporating more social features.

Ubisoft plans to concentrate on the development of its Ghost Recon and The Division franchises, as well as nurturing its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, stated, "Today Ubisoft is opening a new chapter in its history." He emphasized the company's transformation and the goal to create agile and ambitious operating models that foster strong, evergreen game ecosystems, grow high-performing brands, and develop new IPs using cutting-edge technologies.

Guillemot highlighted that the new subsidiary, with its dedicated and autonomous leadership, will focus on transforming the three major franchises into unique ecosystems. This move is intended to strengthen Ubisoft's balance sheet, crystallize the value of its assets, and set the stage for long-term growth and success of these franchises. The company is committed to building a more focused organization that will elevate its brands, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services, all aimed at delivering exceptional gaming experiences and creating value for shareholders and stakeholders.

The new subsidiary will encompass the teams working on Rainbow Six, Assassin’s Creed, and Far Cry in locations such as Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also include Ubisoft’s back-catalog and any new games currently in development or planned for the future. This suggests that existing projects are secure, and there are no immediate plans for further layoffs.

The transaction is expected to be finalized by the end of 2025.

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