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In brief: Ubisoft has announced the formation of a new dedicated subsidiary that will take the reins of development on some of its most lucrative franchises. This separate entity will be focused solely on Assassin’s Creed, Far Cry, and Rainbow Six.
The goal is to transform these series into truly “evergreen, multi-platform” ecosystems built for the long haul. Ubisoft CEO Yves Guillemot framed it as a “foundational step” toward an “agile and ambitious” new operating model for the company’s future.
The deal, unveiled this week, includes a $1.25 billion investment from Tencent for a 25% minority stake in the new subsidiary. The subsidiary will also have its own board of directors and a “dedicated leadership team,” though Ubisoft will maintain overall control.
Guillemot stated that the deal will “crystallize the value” of Ubisoft’s biggest assets and put them on solid footing for long-term growth. He added that the new structure will allow the company to make “swift, high-impact decisions” across development, marketing, and distribution.
The subsidiary will absorb developers from Ubisoft studios in Montreal, Barcelona, Sofia, and other cities currently working on Assassin’s Creed, Far Cry, and Rainbow Six titles. Exactly how many will transfer isn’t yet clear, nor is the fate of those not making the cut.
For Tencent, doubling down on major Ubisoft franchises represents a renewed vote of confidence after more than a decade as a partner. The company’s president, Martin Lau, highlighted the “immense potential” to evolve these series into sustainable gaming platforms.
Meanwhile, Bloomberg Intelligence analyst Nathan Naidu believes that “Tencent’s influence will be a positive one.” This stems from their existing collaboration in mobile gaming dating back to 2018 when Tencent took a stake to fend off a Vivendi takeover attempt. However, the gaming industry’s skyrocketing development costs, fickle consumers, and proliferation of platforms continue to pose a challenge.
If the deal pays off, Tencent’s injection of over a billion dollars provides Ubisoft with the runway to double down on its biggest hits. The transaction now awaits regulatory approval, which Ubisoft expects to attain by the year’s end. More details are promised in the coming months.
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