Leaks have insisted in recent months that Ubisoft is in talks with Tencent to kickstart a new venture with some of the former’s biggest properties, with the latter investing a significant amount of money. That has now been officially announced.
Ubisoft is establishing a new subsidiary headquartered in France that will receive a €1.16 billion investment from Tencent in exchange of a 25 percent minority stake. The new subsidiary, which hasn’t yet been given a name, will oversee, manage, and drive Ubisoft’s three biggest properties- Assassin’s Creed, Far Cry, and Rainbow Six.
The subsidiary will have a “a worldwide, exclusive, irrevocable, perpetual” license over those three properties, including all games that have released and all that will in the future, with parent company Ubisoft continuing to receive royalties. Under a dedicated leadership team and board of directors, the subsidiary will, according to Ubisoft, “make swift, high-impact decisions across development, marketing, and distribution, to ensure these brands continue to evolve, attract new audiences, and deliver groundbreaking gaming experiences for years to come.”
The company says its new subsidiary will “focus on building game ecosystems designed to become truly evergreen and multi-platform”, and thanks to “greater investment and boosted creative capacities”, will be enabled to “drive further increases in quality of narrative solo experiences, expand multiplayer offerings with increased frequency of content release, [and] introduce free-to-play touchpoints.”
“Today Ubisoft is opening a new chapter in its history,” says Ubisoft CEO Yves Guillemot. “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.”
“We are excited to extend our longstanding partnership with Ubisoft through this investment, which reflects our continued confidence in Ubisoft’s creative vision and exceptional talent to drive sustained success in the industry,” says Tencent president Martin Lau. “We see the immense potential for these franchises to evolve into long-term evergreen game platforms and create engaging new experiences for gamers.”
Ubisoft itself will continue to oversee and manage other properties that it owns, including Ghost Recon, The Division, Rayman, and others. The company will also continue working on new IP and “delivering state-of-the-art production game engines and online services.”
Ubisoft says this deal will be finalized by the end of 2025, and that it will reveal further details on the new subsidiary and how it (and Ubisoft itself) will operate going forward at a later date, so stay tuned.
