Ubisoft, the French video game giant, announced on Thursday the creation of a new gaming subsidiary, backed by a €1.16 billion ($1.25 billion) investment from Chinese technology powerhouse Tencent. This strategic move aims to bolster Ubisoft’s most iconic franchises, including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six.
The newly formed subsidiary is set to focus on building game ecosystems that are evergreen and multi-platform. Ubisoft emphasized that the initiative will enhance the quality of narrative-driven solo experiences, expand multiplayer offerings with frequent content updates, introduce free-to-play elements, and integrate more social features.
Tencent’s investment values the subsidiary at €4 billion, reflecting a fourfold multiple based on Ubisoft’s average sales from 2023 to 2025. Ubisoft highlighted that this partnership underscores the strong value of its intellectual properties, strengthens its financial position, and aligns its resources with evolving player expectations.
The announcement follows months of speculation about Ubisoft’s future, including rumors of a potential sale and external investment. Earlier reports suggested that Tencent had been exploring a take-private deal with Ubisoft’s founding Guillemot family.
This news comes shortly after the release of Assassin’s Creed Shadows, the latest installment in Ubisoft’s flagship franchise, which received positive reviews and an average score of 82 on Metacritic.
Ubisoft’s CEO Yves Guillemot expressed optimism about the partnership, stating that it marks a transformative step in the company’s journey to become more agile and ambitious. With Tencent’s backing, Ubisoft aims to unlock the full creative potential of its teams and drive long-term growth for its key brands.