Ubisoft and Tencent’s €1.16 Billion Deal: A New Era for Assassin’s Creed and Other Franchises
Ubisoft Creates a New Gaming Subsidiary
Ubisoft Entertainment has made waves in the gaming industry by announcing the creation of a new subsidiary to house its flagship franchises like Assassin’s Creed, Far Cry, and Rainbow Six. Tencent, the Chinese gaming giant, will invest €1.16 billion ($1.25 billion) for a 25% stake in this newly formed unit, valuing it at €4 billion, including debt.
This move is part of Ubisoft’s broader strategy to stabilize operations following sales declines, project delays, and mounting investor pressure. With Tencent’s backing, Ubisoft aims to create expansive, multi-platform ecosystems around its most successful titles while pursuing fresh projects.
Ubisoft’s Stock Rebounds
Following the announcement, Ubisoft’s shares soared 9.1% to €14.09 in European trading, pushing its market capitalization to approximately €1.8 billion. The recent success of the latest Assassin’s Creed release also contributed to the stock’s upward momentum.
However, despite the gains, Ubisoft’s stock remains down 28% over the past year. The company has faced multiple setbacks, including repeated delays of major titles like Assassin’s Creed Shadows and a reduction in earnings guidance last September. Some investors had even called for Ubisoft to go private as it struggled to recover from its challenges.
Tencent Expands Global Influence
Tencent’s investment marks a significant step in its global gaming expansion. Already holding stakes in major companies like Riot Games and Epic Games, Tencent continues to diversify its international presence as regulatory scrutiny in China tightens.
As part of the agreement, Ubisoft’s subsidiary will gain an exclusive, irrevocable, and perpetual license to develop titles under its core franchises. Ubisoft will maintain operational control and consolidate the unit’s financial results to ensure its creative vision remains intact.
The Future of Assassin’s Creed
With over 200 million copies sold and generating approximately €4 billion in revenue over the past decade, Assassin’s Creed remains a crown jewel in Ubisoft’s portfolio. Tencent’s support could lead to further expansion into mobile gaming, live-service models, and adaptations tailored for Asian markets.
Ubisoft CEO Yves Guillemot expressed confidence in the partnership, emphasizing that it sets the stage for a new era of growth and innovation. “This strategic move will ensure our franchises continue to captivate players worldwide,” he said.
As the company refines its operating structure and unveils more details in the coming months, gamers and investors alike will be watching closely to see how this ambitious collaboration shapes the future of Ubisoft’s most iconic franchises.