Ubisoft Forms New Subsidiary, Secures $1.26 Billion Investment from Tencent
Ubisoft has announced the creation of a new subsidiary to support the expansion of its major gaming franchises, including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. This move is part of the company’s strategy to refine its operating model and enhance game development. As part of this initiative, Tencent will invest approximately $1.26 billion USD in exchange for a minority stake in the new entity.
The newly formed subsidiary will focus on creating long-term game ecosystems that are multi-platform and designed for continuous engagement. Ubisoft plans to expand the development of single-player experiences, increase multiplayer content updates, introduce free-to-play options, and integrate additional social features into its games.
Financial and Structural Impact
This investment values the new subsidiary at approximately $4.35 billion USD. Ubisoft expects this transaction to strengthen its financial position by reducing net debt and increasing its ability to invest in game development. The decision follows a competitive selection process, with Ubisoft’s Board of Directors approving the deal on March 27, 2025. An independent fairness opinion will be provided by financial advisory firm Finexsi.
The new subsidiary will operate with its own leadership team but will remain under Ubisoft’s control. Tencent will hold a minority stake and receive certain governance rights, including customary minority protection and veto rights on specific decisions.
Ubisoft’s Broader Strategic Goals
In addition to establishing the new subsidiary, Ubisoft will continue developing and expanding its other major franchises, including Tom Clancy’s Ghost Recon and The Division. The company aims to scale its top-performing titles, integrate advanced technologies, and maintain its leadership in online services and game engines. More details on Ubisoft’s evolving operating model will be shared in the future.
Yves Guillemot, Ubisoft’s CEO, stated that this move is a key step in the company’s ongoing transformation, allowing it to be more agile while growing its franchises into long-term gaming ecosystems. He emphasized Ubisoft’s focus on building sustainable, high-quality game experiences powered by cutting-edge technology.
Martin Lau, President of Tencent, highlighted Tencent’s confidence in Ubisoft’s creative vision and the potential for its franchises to develop into long-term, continuously evolving gaming platforms.
Key Terms of the Agreement
- Investment Structure: Tencent will invest $1.26 billion US for an estimated 25% economic interest in the new subsidiary.
- Ownership & Control: The subsidiary will remain 100% owned by Ubisoft prior to the transaction, and Ubisoft will retain majority control after Tencent’s investment.
- Leadership & Operations: The subsidiary will have a dedicated leadership team overseeing game development, marketing, and distribution decisions.
- Franchise Management: The subsidiary will develop and manage the Tom Clancy’s Rainbow Six, Assassin’s Creed, and Far Cry franchises, including both back-catalog and future projects.
- Financial Impact: The funds from Tencent’s investment will reduce Ubisoft’s net debt and support franchise growth.
- Regulatory Approvals: The transaction is expected to close by the end of 2025, subject to necessary approvals and the completion of the subsidiary’s formation.
Future Outlook
The new subsidiary will include development teams based in Montreal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will oversee both existing Ubisoft titles and new projects within the designated franchises. The goal is to create sustainable game ecosystems that continue to engage players over time.
As part of the agreement, Tencent will have certain rights and restrictions, including a five-year lock-up period on its shares in the subsidiary. Ubisoft will retain the right to buy back shares under specific conditions in the event of a change in control.
Ubisoft expects this move to position its key franchises for long-term success, expand its reach across platforms, and enhance its ability to develop next-generation gaming experiences.