Ubisoft has announced the creation of a new subsidiary dedicated to 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 Chinese tech giant Tencent. This move comes at a pivotal time for Ubisoft, following the successful launch of Assassin's Creed Shadows, which has already surpassed 3 million players. The company faced several challenges, including high-profile flops, layoffs, studio closures, and game cancellations, which led to its share price hitting a historic low. The pressure is on for 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 build game ecosystems that are "truly evergreen and multi-platform." Tencent will hold a 25% stake in this venture. Ubisoft's goal is to enhance the quality of narrative solo experiences, expand multiplayer offerings, introduce free-to-play touchpoints, and integrate more social features into their games.
Ubisoft plans to concentrate on developing its Ghost Recon and The Division franchises while continuing to grow its top-performing games. Yves Guillemot, co-founder and CEO of Ubisoft, stated, "Today Ubisoft is opening a new chapter in its history." He emphasized the company's transformation and the strategic importance of this new subsidiary, which will spearhead development for three of Ubisoft's largest franchises. The aim is to transform these brands into unique ecosystems and leverage cutting-edge and emerging technologies.
The new subsidiary will encompass the teams working on Rainbow Six, Assassin’s Creed, and Far Cry, located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also manage 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 expected to be completed by the end of 2025.
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