Tencent gains stake in Assassin's Creed, Rainbow Six and Far Cry games as Ubisoft creates new subsidiary on the heels of Assassin's Creed Shadows' perceived success

Ubisoft's latest sensation, Assassin's Creed Shadows recently hit the 3 million player mark, according to the company, albeit without concrete sales figures. Right on the heels of this success, Ubisoft has announced its intention to spin off its top three franchises including Assassin's Creed, Tom Clancy's Rainbow Six, and Far Cry into a new subsidiary that will have a 25% stake from Tencent.

According to an announcement, Tencent will invest €1.16 billion into the new subsidiary, which has a current enterprise value of about €4 billion. Ubisoft's Co-founder and CEO Yves Guillemot termed this deal as a "foundational step" that will help the publisher accelerate game development, reduce the company's consolidated net debt, and sustain the growth of these franchises.

While Tencent would have a 25% share in the new setup, the subsidiary will still be controlled, consolidated and licensed by Ubisoft. Studios that fall under this ambit include Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia along with their back-catalogs and current and future games.

Guillemot further said,

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.”

Tencent's involvement in Ubisoft's new strategy is not surprising. Last year, the Chinese multinational technology conglomerate was reportedly eyeing buying out Ubisoft, from its current 10% stake. This was when Ubisoft market value came down to €1.7 billion after its stock crashed by 33% following the debacle of the much-hyped Star Wars Outlaws.

Following the latest announcement, Ubisoft's US-listed shared increased by 20%, according to Bloomberg.

What is not clear is how staff working at these studios will be impacted by this deal. Insider Gaming has accessed an internal communication from Ubisoft's Chief Studios and Portfolio Officer Marie-Sophie de Waubert that says,

...Of course, this brings some uncertainty and questions. Right now, we may not have all the detailed answers, but we are committed to communicating with you transparently and regularly. Supporting you through this transition is the top priority for your local and your global leadership teams. Don't hesitate to reach out to them and stay tuned locally; usual or dedicated "studio times" will be also good forums to keep you updated and answer your questions."

It remains to be seen if this strategy will actually result in quicker and higher-quality releases for these iconic franchises.

Buy Assassin's Creed Shadows Limited Edition for PS5 and Xbox Series X on Amazon