Ubisoft Plans New Subsidiary for Major Franchises, Backed by Tencent Investment

Ubisoft has announced the creation of a new subsidiary focused on its major franchises: Assassin’s Creed, Far Cry, and Rainbow Six, following a challenging financial period marked by significant stock declines and poor game performances. This new entity will receive a $1.25 billion investment from Tencent, which will take a 25% minority stake, aiming to enhance the franchises into 'evergreen' game ecosystems. Ubisoft CEO Yves Guillemot described this move as a foundational step towards transforming the company's operating model, allowing for improved game quality and increased content release frequency. The decision follows previous considerations of potentially selling off valuable intellectual properties and reflects a strategic shift to attract more investment by focusing on profitable brands. Other franchises like Ghost Recon and The Division will continue to operate independently as Ubisoft seeks to stabilize its overall business. The restructuring comes amid ongoing financial pressures, with reports indicating the new subsidiary could eventually be worth more than Ubisoft itself.