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

Ubisoft has recently announced the creation of a new subsidiary, backed by a significant €1.16 billion (approximately $1.25 billion) investment from the Chinese conglomerate Tencent. This strategic move comes at a pivotal time for Ubisoft, just after the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The launch follows a challenging period for Ubisoft, marked by high-profile flops, layoffs, studio closures, and game cancellations, putting immense pressure on the company to deliver a hit amid a historic low in its share price.

The newly formed subsidiary, valued at €4 billion (approximately $4.3 billion), will be based in France and is dedicated to enhancing the game ecosystems of Ubisoft's major franchises: Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. Tencent will hold a 25% stake in this venture. Ubisoft aims to create "truly evergreen and multi-platform" gaming experiences through this subsidiary, with plans to increase the quality of narrative solo experiences, expand multiplayer offerings, introduce free-to-play elements, and enhance social features within these game ecosystems.

In addition to focusing on these key franchises, Ubisoft plans to continue developing its Ghost Recon and The Division series, with a strong emphasis on growing its top-performing games. This move signifies a shift towards a more agile and ambitious operating model, as stated by Ubisoft's co-founder and CEO, Yves Guillemot.

Guillemot expressed that this new chapter in Ubisoft's history is a crucial step in transforming the company's operations. The goal is to build robust game ecosystems that can sustain long-term growth, enhance high-performing brands, and develop new intellectual properties using cutting-edge technologies. With Tencent as a minority investor, Ubisoft aims to solidify its financial standing and set the stage for the sustained success of these franchises.

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

The transaction is slated to be finalized by the end of 2025. Ubisoft remains committed to refining its organizational structure, empowering its teams to elevate its brands, accelerate the growth of emerging franchises, and spearhead innovation in next-generation technologies and services. The ultimate goal is to deliver enriching, memorable gaming experiences that surpass player expectations and generate significant value for shareholders and stakeholders alike.

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