The fact that Ubisoft is facing challenging times is nothing new. A series of missteps and blunders in 2024 have put the company in a difficult position, from the delays of several highly anticipated mobile games to the underwhelming performances of XDefiant and Star Wars Outlaws. In an effort to restore its financial strength, Ubisoft has been exploring various strategic options. Now, a definitive solution has been reached by establishing a new subsidiary, as reported by VGC.
Confirming earlier reports, Ubisoft has officially formed a new subsidiary — though it currently remains unnamed — to oversee some of its biggest franchises. However, not all of the company’s intellectual properties will fall under this new entity. Instead, it will serve as the home for three of the company’s flagship franchises: Assassin’s Creed, Far Cry, and Rainbow Six.
The subsidiary will also absorb the teams responsible for these franchises, located across studios in Montreal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. In a significant move, Tencent has acquired a 25% stake in the new subsidiary through an investment of approximately €1.1 billion, valuing the new company at around €4 billion.
“Today Ubisoft is opening a new chapter in its history,” Ubisoft co-founder and CEO Yves Guillemot said. “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.
Ubisoft has stated that this investment will contribute to enhancing the quality of single-player experiences, expanding multiplayer modes with a higher frequency of new content releases, exploring potential free-to-play formats, and introducing more social features in future projects. The French gaming giant also emphasised that this move will help secure the value of its assets, strengthen its financial position, and create optimal conditions for the long-term growth of these major franchises.
Additionally, the gaming giant has reassured fans that it remains committed to developing and exploring franchises beyond those managed by the new subsidiary. Titles such as Ghost Recon and The Division will continue to receive attention, ensuring that Ubisoft’s broader portfolio remains a key focus moving forward.
