Ubisoft is creating a subsidiary that will own such game franchises as Assassin's Creed, Far Cry and Rainbow Six. Chinese giant Tencent is investing $1.25 billion in this project, receiving a 25% stake. This is reported by The Game Business.
Tencent is already a significant investor in Ubisoft, owning 10% of the parent company, while the Guillot family owns 15%. In addition, Tencent has a significant stake in the Guillot family's holding company.
The teams working in the new unit will be formed from employees from Ubisoft Montréal, Quebec, Sherbrooke, Saguenay, Barcelona and Sofia. The subsidiary will have its own independent management team, although it will continue to report to the board of directors of the main Ubisoft.
Meanwhile, Ubisoft will focus on Tom Clancy's Ghost Recon and The Division series, as well as other successful franchises. The company also plans to release games already in development, including Anno 117, the Prince of Persia: The Sands of Time remake, Beyond Good & Evil 2, and Splinter Cell.
The possible creation of a joint company with Tencent was discussed back in January 2025. This decision is Ubisoft's response to a difficult financial period, which was marked by disappointing sales of the games Skull and Bones, XDefiant, and Star Wars Outlaws.
Ubisoft believes that this deal will not only strengthen its financial position, but also allow it to become a more agile organization to "unleash the full creative potential of its teams and better align its resources with the constantly evolving expectations of players."
"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," writes Ubisoft co-founder and CEO Yves Guillemot. "With its dedicated and autonomous leadership team, it will focus on transforming these three brands into unique ecosystems."
The deal is expected to be completed by the end of 2025.