Ubisoft to found a subsidiary along with Tencent Games

Ubisoft, the renowned French video game company, has taken a significant step in its evolution by announcing the creation of a new subsidiary, with Tencent, the Chinese tech giant, acquiring a minority stake in this venture. This move marks a pivotal moment in Ubisoft’s history, reflecting its ambition to adapt to the ever-changing gaming landscape and solidify its position as a leader in the industry.

On March 27, 2025, Ubisoft revealed its plans to establish a dedicated subsidiary focused on three of its most iconic franchises: Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. Tencent has invested €1.16 billion (approximately $1.25 billion) for a 25% stake in this new entity, which is valued at €4 billion. This subsidiary aims to create “evergreen” game ecosystems that are multi-platform, integrating free-to-play elements, multiplayer expansions, and enhanced social features.

The decision to form this subsidiary comes after months of strategic deliberations. Ubisoft’s leadership, including CEO Yves Guillemot, emphasized that this move is designed to boost the creative and financial potential of its flagship franchises while ensuring long-term growth and sustainability.

The Backstory

The journey to this announcement has been shaped by several factors. Over the past few years, Ubisoft faced challenges, including delays in game releases, internal restructuring, and increased competition in the gaming industry. These hurdles prompted the company to explore new strategies to remain competitive and innovative.

In early 2025, Ubisoft initiated a formal process to evaluate strategic options for its future. This included discussions with potential investors and partners. Tencent, already a shareholder in Ubisoft, emerged as a key player in these negotiations. The partnership with Tencent is not only a financial boost but also a strategic alliance that leverages Tencent’s expertise in the gaming market, particularly in Asia.

The Vision

The new subsidiary represents Ubisoft’s commitment to delivering high-quality gaming experiences. By focusing on its most successful franchises, the company aims to expand its reach and appeal to a broader audience. The investment from Tencent will enable Ubisoft to enhance its narrative-driven solo experiences, introduce more frequent multiplayer content, and explore disruptive technologies for new intellectual properties.

This announcement also underscores Ubisoft’s dedication to its creative teams. The subsidiary will operate with a degree of autonomy, allowing it to innovate and adapt quickly to market demands. Ubisoft’s leadership has expressed confidence that this move will unlock the full potential of its franchises and set the stage for future success.

Ubisoft’s partnership with Tencent and the creation of this new subsidiary signal a bold step forward for the company. It reflects a strategic shift towards agility, innovation, and global collaboration. As the gaming industry continues to evolve, this move positions Ubisoft to thrive in an increasingly competitive market while staying true to its legacy of creating memorable gaming experiences.