Ubisoft has launched a new subsidiary company focused on its 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 Tencent. This move comes as Ubisoft navigates the aftermath of multiple challenges, including high-profile game flops, layoffs, studio closures, and game cancellations, all while their latest release, Assassin's Creed Shadows, has already surpassed 3 million players. The pressure is immense on this title to perform well, especially given Ubisoft's historic low share price.
The newly established subsidiary, valued at €4 billion (approximately $4.3 billion) and headquartered in France, aims to create "game ecosystems designed to become truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture. Ubisoft's strategy includes enhancing the quality of narrative solo experiences, expanding multiplayer offerings with frequent content updates, incorporating free-to-play elements, and adding more social features.
Ubisoft plans to concentrate on further developing its Ghost Recon and The Division franchises alongside nurturing its top-performing games.
“Today Ubisoft is opening a new chapter in its history,” said Yves Guillemot, co-founder and chief executive officer of Ubisoft. “As we accelerate the company’s transformation, this is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious. We are focused on building strong game ecosystems designed to become evergreen, growing high-performing brands and creating new IPs powered by cutting-edge and emerging technologies.“With the creation of a dedicated subsidiary that will spearhead development for three of our largest franchises and the onboarding of Tencent as a minority investor, 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. With its dedicated and autonomous leadership team, it will focus on transforming these three brands into unique ecosystems.
“We are committed to building a sharper, more focused organization—one where talented teams will take our brands to the next level, accelerate the growth of emerging franchises, and lead innovation in next generation technologies and services, all with the goal of delivering enriching, memorable games that exceed players' expectations, and create superior value for our shareholders and other stakeholders.”
In practical terms, this new subsidiary encompasses the development teams for Rainbow Six, Assassin’s Creed, and Far Cry, located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It also includes Ubisoft’s back-catalog and any new games currently in development or planned for the future. This suggests that existing projects are secure, and there are no immediate plans for further layoffs.
The transaction is slated to be finalized by the end of 2025.
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