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

Ubisoft has established 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, the Chinese tech giant. This news follows closely on the heels of the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The backdrop to this announcement includes a series of challenges for Ubisoft, such as high-profile flops, layoffs, studio closures, and game cancellations, which contributed to the company's share price reaching an all-time low. Consequently, there is immense pressure on Assassin's Creed Shadows to perform well.

The newly formed 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 holds a 25% stake in this venture. Ubisoft has outlined ambitious plans for the subsidiary, which include enhancing the quality of narrative solo experiences, expanding multiplayer offerings with more frequent content releases, introducing free-to-play elements, and integrating more social features into their games.

In addition, Ubisoft intends to concentrate on the development of its Ghost Recon and The Division franchises while continuing to grow its top-performing titles. Yves Guillemot, co-founder and CEO of Ubisoft, described the formation of the subsidiary as a pivotal moment in the company's history. He emphasized that this move is part of a broader transformation aimed at making Ubisoft more agile and ambitious. The subsidiary will focus on turning the three major franchises into robust ecosystems, leveraging cutting-edge and emerging technologies to create new intellectual properties.

The subsidiary encompasses development teams in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, and will handle Ubisoft's back-catalog as well as any new games currently in development or planned for the future. This suggests that existing projects are secure, and there have been no announcements regarding further layoffs.

The transaction is slated for completion by the end of 2025. As developments continue, Ubisoft is poised to enter a new era focused on innovation, growth, and delivering exceptional gaming experiences that meet and exceed player expectations.

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