Following French publisher Ubisoft’s success with the launch of its new open-world action RPG Assassin’s Creed Shadows last week, the firm has officially confirmed a major upcoming structural change for its business operations.
Specifically, Ubisoft announced on Thursday morning that it’s creating a new gaming subsidiary that encompasses three of its largest franchises: Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. The multinational Chinese company Tencent will invest €1.16b (roughly $1.2b) for 25% stake in the division, giving it an approximate enterprise value of €4b ($4.3b). This number exceeds Ubisoft’s own by a large margin.
In exchange for a royalty, Tencent will be granted “a worldwide, exclusive, irrevocable, perpetual license” for Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. The new subsidiary will include all of Ubisoft’s development teams currently working on these intellectual properties, and will “will focus on building game ecosystems designed to become truly evergreen and multi-platform.”
“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,” commented Ubisoft CEO Yves Guillemot in the company’s press release. “With its dedicated and autonomous leadership team, it will focus on transforming these three brands into unique ecosystems.”
Notably, Ubisoft was rumored to be seeking a buyout with Tencent in 2024 following recent struggles with the performance of the publisher’s games. A report earlier this year also suggested that the two companies were looking to make a deal over some of Ubisoft’s assets; this, evidently, is the result of those discussions.
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