Ubisoft has announced the creation of a new subsidiary dedicated to three of its most prominent franchises: Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. As part of this initiative, Tencent will invest €1.16 billion for a minority stake in the new entity, which is expected to complete its formation before the end of 2025.
The new subsidiary will focus on expanding these franchises into multi-platform, evergreen game ecosystems. With increased investment and expanded creative resources, the entity aims to enhance narrative-driven single-player content, increase the frequency of multiplayer updates, introduce free-to-play components, and incorporate social features to strengthen player engagement.
Ubisoft values the new subsidiary at approximately €4 billion, based on a sales multiple of around 4x averaged across the 2023–2025 financial years. This valuation reflects the perceived strength of Ubisoft’s intellectual property portfolio. The investment will be used to reduce the company’s consolidated net debt, support its transformation efforts, and fund the growth of selected franchises.
Following a formal and competitive process conducted earlier in the year, Ubisoft’s Board of Directors unanimously approved the agreement on 27 March 2025, citing it as being in the “best interests of all Ubisoft stakeholders”. Finexsi has been appointed as the independent expert to provide a fairness opinion for the transaction.
Under the agreement, the new subsidiary will include development teams based in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will have access to Ubisoft’s intellectual property through an exclusive, irrevocable, and perpetual licence in exchange for royalty payments. The new structure will have a dedicated leadership team with autonomy over development, marketing, and distribution decisions.
Ubisoft retains exclusive control and majority ownership of the new subsidiary. Tencent will hold an approximate 25% economic interest and will receive customary minority protections and consent rights over major asset disposals. The deal also includes share transfer provisions such as right of first refusal, tag-along and drag-along rights, and change-of-control clauses involving call and put options – among others.
Ubisoft CEO Yves Guillemot commented on the announcement, stating that the initiative marks a key milestone in the company’s transformation:
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. We are focused on building strong game ecosystems designed to become evergreen, growing high-performing brands and creating new IPs powered by cutting-edge and emerging technologies.
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. With its dedicated and autonomous leadership team, it will focus on transforming these three brands into unique ecosystems.
We are committed to building a sharper, more focused organization-one where talented teams will take our brands to the next level, accelerate the growth of emerging franchises, and lead innovation in next-generation technologies and services, all with the goal of delivering enriching, memorable games that exceed players’ expectations, and create superior value for our shareholders and other stakeholders.
Tencent President Martin Lau also shared his perspective on the investment, adding:
We are excited to extend our longstanding partnership with Ubisoft through this investment, which reflects our continued confidence in Ubisoft’s creative vision and exceptional talent to drive sustained success in the industry. We see the immense potential for these franchises to evolve into long-term evergreen game platforms and create engaging new experiences for gamers.
An official summary can be found on the following page:
