Ubisoft Creates New Subsidiary For Its Biggest Franchises With Tencent As Minority Owner

Ubisoft announced Tencent has invested €1.16 billion ($1.25 billion) for a minority stake in a newly created subsidiary that will spearhead the development of its three biggest franchises going forward: Assassin’s Creed, Far Cry, and Rainbow Six.

According to a press release, this new subsidiary, which does not yet have a name, will “focus on building game ecosystems designed to become truly evergreen and multi-platform. Backed by greater investment and boosted creative capacities, it will drive further increases in quality of narrative solo experiences, expand multiplayer offerings with increased frequency of content release, introduce free-to-play touchpoints, and integrate more social features.”

The subsidiary includes the teams responsible for developing the Assassin’s Creed, Rainbow Six, and Far Cry franchises located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. The new subsidiary will now manage these series’ back catalogs, games currently in development, and any future titles. It will be run by a dedicated leadership team supervised by the board of directors. To paraphrase, these three franchises have been moved into a separate, internal organization that will oversee them going forward. 

Rainbow Six Siege

Additionally, the subsidiary will also be granted, according to the press release, “a worldwide, exclusive, irrevocable, perpetual license in respect of the intellectual property and similar proprietary rights owned or licensable by Ubisoft in relation to Tom Clancy’s Rainbow Six, Assassin’s Creed and Far Cry in exchange for a royalty.” The transaction is projected to be completed by the end of the year. 

Ubisoft co-founder and CEO Yves Guillemot says in a statement by creating this subsidiary, “we are crystalizing the value of our assets, strengthening our balance sheet, and creating the best conditions for these franchises’ long-term growth and success.”

Tencent president Martin Lau adds, “We are excited to extend our longstanding partnership with Ubisoft through this investment, which reflects our continued confidence in Ubisoft’s creative vision and exceptional talent to drive sustained success in the industry. We see the immense potential for these franchises to evolve into long-term evergreen game platforms and create engaging new experiences for gamers.”

Assassin's Creed Shadows

This move serves as an effort to stabilize Ubisoft following a challenging 2024 that saw company endure a series of high-profile flops and studio closures. It shuttered a Leamington, Ontario support studio in January, resulting in nearly 200 layoffs. Its live-service multiplayer shooter XDefiant is shutting down in June after launching less than a year ago, which resulted in the closure of offices in San Francisco and Osaka last December. The team behind the critically acclaimed Prince of Persia: The Lost Crown was disbanded after the game reportedly underperformed in sales. Star Wars Outlaws, which launched in a less-than-stellar state last August, was also considered a sales disappointment that caused Ubisoft’s share price to take a big hit after its arrival. The situation appeared so dire that Ubisoft and Tencent had reportedly considered taking the company private last fall to help right the ship. 

Ubisoft’s latest title, Assassin’s Creed Shadows, was released last week to generally positive critical reception (here's our review). There are no reported sales figures as of yet, but Ubisoft announced today the title has garnered over 3 million players since release, generating the second-highest launch day sales revenue behind only Assassin’s Creed Valhalla.