Ubisoft announced the creation of a new subsidiary based on its core gaming franchises, including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. The strategic investment is backed by a massive €1.16 billion ($1.25 billion) from Chinese technology conglomerate Tencent, which will own 25% of the new subsidiary. The subsidiary is valued at approximately €4 billion ($4.3 billion), reflecting the significant value of Ubisoft’s intellectual properties and reinforcing its financial position.
The new subsidiary aims at building long-term, cross-platform gaming universes. With additional funding and creative resources, it will be capable of elevating the level of quality of single-player narratives, multiplying multiplayer opportunities with more frequent content updates, incorporating free-to-play dimensions, and introducing more social features. The approach is designed to align more closely with evolving gamers’ needs and release the full creative potential of Ubisoft’s teams.
Tencent’s investment is a significant boost for Ubisoft, which has been seeking outside investment to safeguard its strategic position. The firm has endured difficult years, including costly game failures, layoffs, and studio closures. However, recent success with Assassin’s Creed Shadows, which recently surpassed 3 million players, indicates that it is on an upswing.
The establishment of this subsidiary falls under the grand scheme of Ubisoft to reshape its operating model, one that is nimbler and more ambitious. CEO Yves Guillemot explained that the move opens a new chapter in Ubisoft’s history, enabling the company to become more concentrated and sharper. The subsidiary will be composed of teams from Montreal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia and will be tasked with both the existing back catalog and future games under development.
Tencent President Martin Lau expressed excitement at deepening their cooperation with Ubisoft, with confidence in Ubisoft’s talent and creative vision. The investment attests to Tencent’s faith in these franchises being long-term evergreen game platforms that can spawn exciting new experiences for gamers.
The acquisition is expected to be finalized by the end of 2025, subject to regulatory approvals and other customary conditions. Ubisoft will retain control of the subsidiary, which will remain headquartered in France. The acquisition highlights the strategic importance of Ubisoft’s intellectual properties and positions the company for long-term success in the gaming industry.
