Tencent invests $1.25bn in new Ubisoft subsidiary fascinated with Assassin’s Creed, A long way Exclaim, and Rainbow Six

Ubisoft has “accelerated its transformation” by establishing a new operational framework and subsidiary following a $1.25 billion cash “injection” from the Chinese giant Tencent.

In an effort to “quickly” enhance its operational model, Ubisoft has formed a subsidiary centered on its well-known brands such as Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six—arguably the developer/publisher’s core franchises. Through a “formal and competitive process,” Ubisoft selected Tencent to invest a minority stake of €1.16 billion ($1.25 billion) to further develop these games’ “truly evergreen and multiplatform ecosystems.”

The newly established subsidiary has been provided with a “global, exclusive, irrevocable, perpetual license” concerning the aforementioned intellectual properties, and includes teams working on these franchises located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, although it will be headquartered in France and “100% owned” by Ubisoft.

Ubisoft stated that the $1.25 billion investment will be utilized to “enhance Ubisoft’s financial standing by significantly decreasing its consolidated net debt, expedite the Group’s transformation, and support the growth of selected franchises.”

“Today, Ubisoft is commencing a new chapter in its history,” expressed co-founder and CEO, Yves Guillemot. “As we advance the company’s transformation, this is a critical step in reshaping Ubisoft’s operational model to enable us to be both agile and bold. We are excited about developing extraordinary game ecosystems aimed at becoming evergreen, nurturing high-performing brands and generating new intellectual properties driven by cutting-edge and emerging technologies.”

“With the establishment of a specialized subsidiary dedicated to advancing three of our major franchises and the inclusion of Tencent as a minority stakeholder, we are solidifying the value of our assets, enhancing our financial standing, and creating optimal conditions for the long-term growth and success of these franchises. With its dedicated and autonomous…”