Ubisoft has announced the creation of a dedicated subsidiary based on its Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six brands. After a formal and competitive selection process initiated by the Group earlier this year, Tencent will invest €1.16bn for a minority stake in the new subsidiary. Ubisoft says this new subsidiary will focus on building “evergreen and multi-platform game ecosystems”, including free-to-play ‘touchpoints’, and a greater integration of social features.
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The announcement further outlines that the €1.16bn also be used to “improve the quality of narrative solo experiences, expand multiplayer offerings with more frequent content releases”.
New Ubi Subsidiary Explained
The new subsidiary will encompass the teams working on the Tom Clancy’s Rainbow Six, Assassin’s Creed, and Far Cry franchises, located in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. It will also include the back-catalogue and any new games currently being developed or planned for the future.
Ubisoft will grant the new subsidiary a worldwide, exclusive, irrevocable, and perpetual license for the intellectual property and similar proprietary rights related to Tom Clancy’s Rainbow Six, Assassin’s Creed, and Far Cry, in exchange for a royalty.
The Division and Ghost Recon Future
Alongside the creation of this new entity, Ubisoft will focus on nurturing its iconic franchises like Tom Clancy’s Ghost Recon and The Division. They will work on “accelerating the growth of top-performing titles, leveraging disruptive technologies for new IPs, and continuing to deliver cutting-edge game engines and online services”.
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The announcement further clarifies that more details about the Group’s future operating model will be shared later.
Yves Guillemot on Tencent Investment and Ubisoft Franchise Shake-up
Yves Guillemot, Co-Founder and Chief Executive Officer said “Ubisoft is opening a new chapter in its history.”
Guillemot said: “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.
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“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.”
Guillemot concluded, “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.”
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Martin Lau, President of Tencent, said “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.”
