A bold move to turn Assassin’s Creed, Far Cry, and Rainbow Six into evergreen platforms
Ubisoft has announced the formation of a new subsidiary to take over development of its core franchises—Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six—with Tencent investing €1.16 billion ($1.25 billion) for a 25% stake.
The move is part of Ubisoft’s wider transformation strategy, following a string of underperforming titles and internal restructuring. This new operating division will unify teams across Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. Its goal is to build long-term multi-platform ecosystems for Ubisoft’s biggest IPs, moving beyond one-off releases into persistent, content-rich live services.
The deal values the new subsidiary at roughly €4 billion ($4.3 billion), with the investment expected to drastically improve Ubisoft’s financial position by reducing net debt and providing greater strategic agility. Despite Tencent’s involvement, Ubisoft retains full operational control over the subsidiary.
Vision for Evergreen Franchises
The new division is designed to increase the quality of narrative single-player content, ramp up the frequency of multiplayer updates, introduce free-to-play “touchpoints,” and expand social features. Ubisoft wants these games to become true live-service ecosystems that evolve over time.
CEO Yves Guillemot described the deal as a “foundational step,” saying it would enable Ubisoft to become “both agile and ambitious.” He emphasized that the new structure will help “crystallize the value of our assets” and allow the franchises to grow under an autonomous leadership team capable of making high-impact decisions across development, marketing, and distribution.
Martin Lau, president of Tencent, stated, “We are excited to extend our longstanding partnership with Ubisoft. We see immense potential for these franchises to evolve into long-term evergreen game platforms and create engaging new experiences for gamers.”
Legal Structure and Ownership Rights
Ubisoft has granted the new division a worldwide, exclusive, irrevocable, and perpetual license to use the IP rights related to the three franchises. Ubisoft will receive a royalty in return. The deal includes several binding agreements that ensure Ubisoft maintains majority control and protects both parties’ interests.
Key terms include:
- 5-year lock-up on Tencent’s shares (unless Ubisoft loses majority control).
- Minority protection rights for Tencent, including vetoes on major asset sales.
- Customary share transfer options: Ubisoft has first refusal; Tencent has tag-along/put rights.
- Fair market call/put options in case of Ubisoft’s change of control, with price protections active for 4 years.
The transaction is expected to close by the end of 2025, pending completion of the carve-out process, regulatory clearances, and issuance of a fairness opinion by independent firm Finexsi.
Analysts React
Industry analysts have mixed reactions. David Cole of DFC Intelligence praised the deal’s potential, calling the franchises “classics that have underperformed lately” but could be revived with proper investment. He also pointed out Tencent’s aggressive strategy to dominate Western gaming markets.
Michael Pachter of Wedbush offered a more skeptical view. “Ubisoft will have to license their own content from their subsidiary… it should end up zero-sum,” he warned, questioning whether Ubisoft truly unlocked value or just shifted it on paper.
Meanwhile, Michael Metzger of Drake Star Partners said that taking the company private likely proved too complex, and the subsidiary structure provided a cleaner path to raise capital at scale without regulatory headaches.
A New Chapter for Ubisoft
In addition to the core division, Ubisoft will continue developing other high-profile IPs such as Ghost Recon and The Division. The company also aims to grow newer franchises using disruptive technologies and its proprietary engines and services.
“As we accelerate Ubisoft’s transformation,” Guillemot said, “we are focused on building strong game ecosystems designed to become evergreen… powered by cutting-edge technologies.”
