Ubisoft and Tencent forms a new subsidy for its popular IPs like Assassin’s Creed and Far Cry

Ubisoft has launched a new subsidiary with over €1 billion in investment from Tencent. This new subsidiary will hold the company’s three biggest video game IPs, Assassin's Creed, Rainbow Six, and Far Cry. News regarding Ubisoft forming a separate entity were already there for the last few weeks, which an official announcement confirmed.

“Today Ubisoft is opening a new chapter in its history 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,” said Ubisoft’s CEO Yves Guillemot in an official release.

“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,” Guillemot further added.

Ubisoft to remain in control

While Tencent’s investment of €1.16 billion invest is quite significant, the company only holds a minority stake in this new subsidiary which was revealed to be around 25%. This means that this new entity is valued at over €4 billion and was previously owned by Ubisoft who still remains the majority stake holder.

The new subsidiary is headquartered in France and will include development teams from Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. That’s a decent number of studious contributing to this new entity which plans to hit a reset button for Ubisoft’s past shenanigans and current situation.

Also Read: Ubisoft thanks players for a successful release of Assassin’s Creed Shadows

Did Assassin's Creed Shadows make a difference?

Assassin's Creed Shadows was a success. The delays did help make the game very decent and helped Ubisoft see some incredible numbers after a long time. Talks regarding a subsidiary were already happening so it’s hard to tell of the impact, however, the success of the game likely got everyone’s attention towards Ubisoft and built more confidence in the company.