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

Ubisoft has established a new subsidiary centered around its Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, backed by a €1.16 billion (approximately $1.25 billion) investment from Chinese tech giant Tencent.

The announcement follows the launch of Assassin's Creed Shadows, which has already surpassed 3 million players. In the months leading up to its release, Ubisoft faced multiple high-profile flops, layoffs, studio closures, and game cancellations, as its stock price hit a record low—placing immense pressure on the company to deliver success.

Ubisoft revealed that the new subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, will concentrate on “building game ecosystems designed to become truly evergreen and multi-platform.” Tencent holds a 25% stake in the venture.

Ubisoft added: “Backed by greater investment and enhanced creative capabilities, it will drive further improvements in the quality of narrative-driven solo experiences, expand multiplayer offerings with more frequent content updates, introduce free-to-play touchpoints, and integrate deeper social features.”

Ubisoft also stated it will “focus” on advancing its Ghost Recon and The Division franchises and expanding its top-performing titles.

“As we accelerate the company’s transformation, this is a foundational step in reshaping Ubisoft’s operating model to become more agile and ambitious. We are focused on building robust game ecosystems designed to become evergreen, growing high-performing brands, and creating new IPs powered by cutting-edge and emerging technologies.

“With the creation of a dedicated subsidiary to lead development for three of our largest franchises and the addition of Tencent as a minority investor, we are crystallizing the value of our assets, strengthening our balance sheet, and establishing the optimal conditions for the long-term growth and success of these franchises. With its dedicated and autonomous leadership team, it will transform 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, all aimed at delivering enriching, memorable games that exceed player expectations and create superior value for our shareholders and stakeholders.”

So, what does this deal mean in practice? The new subsidiary encompasses the teams developing Rainbow Six, Assassin’s Creed, and Far Cry across Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, along with Ubisoft’s back catalog and all current and future projects. This suggests existing initiatives are secure, with no further layoffs announced yet.

The transaction is anticipated to close by the end of 2025.

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