Ubisoft just made a big move—spinning off a new subsidiary focused on some of its biggest franchises: Assassin’s Creed, Rainbow Six, and Far Cry. And backing this new unit? None other than Chinese gaming giant Tencent, which has grabbed a 25% stake for €1.16 billion ($1.25 billion). That puts the value of this new entity at around €4 billion ($4.3 billion), showing just how much Ubisoft’s top IPs are worth.
A Strategic Shift for Ubisoft
Ubisoft is shaking things up at a time when the company is in need of a fresh approach. The new subsidiary is meant to bring financial stability and a more flexible way to develop games. This unit will handle the Assassin’s Creed, Rainbow Six, and Far Cry franchises, with development teams spread across studios in Montreal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. However, the headquarters will stay in France.
Meanwhile, Ubisoft’s other franchises—like Watch Dogs, The Division, and Ghost Recon—will remain part of the main company. The new subsidiary will hold exclusive rights to the three flagship franchises but will pay Ubisoft royalties in return.
Tencent’s Expanding Influence
The Chinese tech giant has had a stake in Ubisoft for a while, having invested $300 million in 2022 for a 49.9% stake in Guillemot Bros, the entity controlled by Ubisoft’s co-founders. Tencent also owns nearly 10% of Ubisoft’s overall shares.
While Tencent now has more influence, Ubisoft is still in the driver’s seat. The French company keeps majority ownership and control over operations, though Tencent will have minority rights and veto power over major decisions.
What This Means for Ubisoft’s Future
Ubisoft has hit some rough patches in recent years—layoffs, studio closures, and underwhelming game launches. Star Wars Outlaws underperformed, Assassin’s Creed Shadows got delayed, and the company’s stock price took a hit. This restructuring is a move to steady the ship.
According to CEO Yves Guillemot, the goal is to create “strong game ecosystems” that keep players engaged long-term. Ubisoft wants its biggest franchises to be “evergreen,” meaning continuously updated with fresh content or live service. The new subsidiary will also look into emerging tech and experiment with social and free-to-play features.
The deal should be finalized by the end of 2025, pending regulatory approval. Ubisoft says more details on its new structure will be shared down the line. For now, the company is focused on making the transition smooth for its development teams and setting up the new subsidiary for long-term success.
Discover more from Gaming Foodle
Subscribe to get the latest posts sent to your email.
