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

Ubisoft has recently established a new subsidiary company centered around its renowned Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises, backed by a significant €1.16 billion (approximately $1.25 billion) investment from the Chinese tech giant Tencent. This development comes shortly after the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The timing is crucial for Ubisoft, which has faced challenges with high-profile flops, layoffs, studio closures, and game cancellations, contributing to its share price reaching an all-time low. The pressure is immense on Assassin's Creed Shadows to perform well amidst these difficulties.

The newly formed subsidiary, which carries a valuation of €4 billion (approximately $4.3 billion) and is 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 vision for this subsidiary includes enhancing the quality of narrative solo experiences, expanding multiplayer offerings with more frequent content updates, introducing free-to-play elements, and enhancing social features within their games.

In addition to these three major franchises, Ubisoft plans to concentrate on further developing its Ghost Recon and The Division series and nurturing its top-performing titles. Yves Guillemot, co-founder and CEO of Ubisoft, emphasized that this move marks a new chapter for the company. He stated, "Today Ubisoft is opening a new chapter in its history," and highlighted the strategic shift towards building robust game ecosystems that can sustain long-term growth and success. The new subsidiary will be led by a dedicated and autonomous team, focusing on transforming these three major brands into comprehensive ecosystems.

The subsidiary will encompass the development teams for Rainbow Six, Assassin’s Creed, and Far Cry, located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also manage Ubisoft’s back-catalog and any ongoing or future game projects, suggesting that existing projects are secure with no immediate plans for further layoffs.

The transaction is slated to be finalized by the end of 2025. As this story develops, Ubisoft's strategic moves will be closely watched to see how this new subsidiary impacts the future of these beloved franchises and the company's overall performance in the gaming industry.

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