Ubisoft Creates New Subsidiary with Tencent Investment

Ubisoft has announced the formation of a new subsidiary after securing an investment from Tencent amounting to €1.16 billion . The new subsidiary will focus on Ubisoft’s most prominent gaming franchises, encompass the development teams behind Tom Clancy’s Rainbow Six, Assassin’s Creed, and Far Cry, spanning studios in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia.

Tencent will acquire a 25% economic interest in the new subsidiary, which will remain exclusively controlled and consolidated by Ubisoft. The investment aims to strengthen Ubisoft’s balance sheet, accelerate the company’s transformation, and support the sustained growth of these key franchises.

The subsidiary will operate with a dedicated leadership team and Board of Directors, with the primary goal of enhancing creative vision and streamlining operations. The strategy involves building “game ecosystems” designed to become evergreen and multiplatform, with plans to improve narrative experiences, expand multiplayer offerings, introduce free-to-play elements, and integrate more social features.

Ubisoft CEO Yves Guillemot described the move as “opening a new chapter in its history,” emphasizing the company’s focus on agility and ambition. The transaction is expected to be completed before the end of 2025, subject to regulatory clearances and the creation of the subsidiary.

The agreement includes several key provisions, such as a 5-year lock-up on Tencent’s shares and various protective rights for both parties. Meanwhile, Ubisoft will continue to develop other franchises like Tom Clancy’s Ghost Recon and The Division, while exploring new intellectual properties and advanced technologies.

Tencent’s president Martin Lau expressed excitement about the partnership, highlighting the potential for these franchises to evolve into long-term gaming platforms that create engaging experiences for players.

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