Tencent has committed $1.25 billion to a new Ubisoft subsidiary, which will concentrate on notable franchises such as Assassin's Creed, Far Cry, and Rainbow Six

Tencent has provided a $1.25 billion capital infusion to Ubisoft, which has prompted the company to enhance its operational framework and form a new subsidiary. This move focuses on the development of some of Ubisoft's key franchises, including Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six.

The newly created subsidiary, which will maintain exclusive and perpetual rights to the aforementioned intellectual properties, will oversee teams based in various cities like Montréal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia. Although headquartered in France, it remains entirely owned by Ubisoft.

With this financial boost, Ubisoft aims to bolster its financial health by reducing net debt, spur its transformation, and support the growth of specific franchises. According to Yves Guillemot, Ubisoft's co-founder and CEO, this transition marks a significant milestone in the company's evolution, enabling agility and the cultivation of thriving game ecosystems.

Guillemot stated that having a specialized subsidiary and Tencent as a minority partner crystallizes the value of Ubisoft's assets. This prepares the ground for long-term expansion and success of prominent franchises.

Martin Lau, President of Tencent, expressed enthusiasm about the extended collaboration with Ubisoft through this investment. He praised Ubisoft's creative direction and talent, anticipating that these franchises can grow into enduring platforms that offer engaging experiences.

Despite a 51.8% year-on-year drop in net bookings for the third quarter, Ubisoft's financial outlook was aligned with its revised projections. The company looks forward to potential growth in the next quarter, predicting a rise in net bookings following the launch of Assassin's Creed Shadows on March 20.