Ubisoft has announced that Tencent has invested US$1.25 billion in their new gaming subsidiary.
Ubisoft, on 27 March, 2025 Paris time, has announced that it's making a new gaming subsidiary and China-based company. Tencent has invested €1.16 billion (US$ 1.25 billion) in the subsidiary for a 25% stake. According to the press release from Ubisoft, the subsidiary will include the teams developing the Tom Clancy’s Rainbow Six, Assassin’s Creed and Far Cry franchises based in Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, as well as their back-catalog and any new games they have currently under development or to be developed.
Yve Guillermot, Ubisoft Co-Founder and Chief Executive Officer, said:
“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.”
Martin Lau, President of Tencent, said they are excited to extend their longstanding partnership with Ubisoft through this investment.
“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.”
Tencent's investment in the new subsidiary values it at €4 billion, implying a four-times multiple based on its average sales from full-year 2023 to 2025. When this article was published, the new carveout from Ubisoft didn't have a name yet. According to Reuters, Ubisoft stock has risen 10% after Tencent's investment in the new subsidiary.
Ubisoft is fresh from the release of Assassin's Creed: Shadows, which saw success in the market, bringing in two million players to their newest entry to the franchise from two days. Check out our review of Assassin's Creed: Shadows here.
