France-based game publisher Ubisoft has announced the creation of a new dedicated subsidiary that will spearhead the development and evolution of its flagship franchises—including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six. Backed by Chinese conglomerate Tencent, the deal will see the company invest €1.16 billion EUR (approximately $1.25 billion USD) for a 25% economic interest in the new entity, which Ubisoft values at $4.3 billion post-transaction.
According to a company release, the subsidiary will drive enhancements across its top franchises by improving narrative solo experiences, expanding multiplayer offerings with more frequent content updates, introducing free-to-play touchpoints, and integrating additional social features. The new entity will consolidate the studios and teams working on the aforementioned franchises, along with any in-development properties and the extensive back catalog of games. In exchange, Ubisoft will grant the subsidiary a worldwide, exclusive, irrevocable, perpetual license to its intellectual properties in these franchises, subject to a royalty arrangement.
The subsidiary will be managed by a dedicated leadership team, overseen by Ubisoft’s Board of Directors. Under the terms of the agreement, Tencent will receive “customary minority protection veto rights” and certain consent rights regarding the disposal of significant assets. Key provisions include a five-year lock-up on Tencent’s shares—unless Ubisoft loses its majority voting rights—and other standard share transfer provisions, such as rights of first refusal and tag-along rights. In addition, a call option for Ubisoft and a put option for Tencent have been included, triggered by specific change-of-control conditions approved by Ubisoft’s Board.
The transaction, which is subject to regulatory and shareholder approvals, is expected to close by the end of 2025. Ubisoft has yet to clarify how this new structure might affect its global workforce of approximately 19,000 employees. Ubisoft’s move is part of a broader transformation strategy aimed at strengthening its balance sheet, unlocking its creative potential, and meeting evolving player expectations.