Ubisoft announced the creation of a subsidiary company to which it plans to transfer some of its major franchises. Tencent has become an investor in the new organization.
Assassin’s Creed Shadows
The Chinese giant agreed to purchase a 25% stake in Ubisoft's subsidiary for €1.16 billion. As a result, its market value exceeded €4 billion, which is twice the capitalization of Ubisoft itself. At the time of writing, the French publisher's market valuation stands at €1.9 billion.
The new company will receive three major brands from Ubisoft: Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. It will oversee the development teams and own the rights to all existing and future games in these franchises. It will hold an exclusive, perpetual, and irrevocable license for these projects.
Ubisoft will focus on developing franchises such as Tom Clancy’s Ghost Recon and The Division. More details about its future strategy will be shared later.
Ubisoft CEO Yves Guillemot called the creation of the subsidiary with Tencent's support a "new chapter" in the company's history. He stated that this move will accelerate Ubisoft's transformation, making it more agile and ambitious. Additionally, Ubisoft will be able to use the funds received from Tencent to reduce its debts. The deal has already been approved by the board of directors, and its closure is expected by the end of 2025.
As reported by Bloomberg, Ubisoft shares rose by 20% in after-hours trading following the news.