Ubisoft announced it had formed a new subsidiary supported by Tencent to oversee some of its top-selling franchises like Assassin’s Creed, Far Cry, and Rainbow Six. The action was done in the midst of financial woes that led to restructuring of the portfolio and investing in the company.
Malaise at Ubisoft Triggers Restructuring of IP
While it holds a portfolio of blockbuster gaming brands, Ubisoft has seen steadily mounting production expenses and shrinking revenues in recent years. All of its high-profile 2024 titles, including Star Wars Outlaws, Skull and Bones, and XDefiant, failed to meet expectations, resulting in revenue loss and the devaluation of the company’s stock.
Although 2025 started off on a positive note as Assassin’s Creed Shadows was well received when it came out, Ubisoft has proceeded and sold its most prized IPs to a new company. The subsidiary company will be autonomous but will be making royalty fees to Ubisoft for the licenses that it will be possessing.
Tencent Invests Over $1 Billion in the New Business
The Tencent-backed division was worth €4 billion ($4.3 billion), and Tencent acquired it for €1.16 billion ($1.25 billion) for a 25% stake. The deal firmly positions Tencent in Ubisoft’s future and brings financial security to the publisher.
Ubisoft CEO Yves Guillemot explained the decision would make it clear to “improve our balance sheet” and secure the “best conditions” for long-term Assassin’s Creed, Far Cry, and Rainbow Six development.
What It Means for Ubisoft and Its Brands
The new company will take over the development and upkeep of existing and future games under the three brands. The employees of Ubisoft’s Barcelona, Montreal, Quebec, Saguenay, Sherbrooke, and Sofia studios will form the new company.
This reorganization opens questions regarding Ubisoft’s potential future direction. Having had Assassin’s Creed dominate Ubisoft’s strategy for almost two decades, the firm might now turn attention to other franchises, bringing back expired series such as Splinter Cell or Prince of Persia.
Ubisoft spinning off segments of its biggest franchises is a major shift in its business model, and how this will influence upcoming Assassin’s Creed, Far Cry, and Rainbow Six titles is not well known.
