Ubisoft announces major restructuring of gaming division with Tencent following the launch of Assassin’s Creed Shadows

On March 27, 2025, Ubisoft Entertainment SA announced that it is forming a new subsidiary with Tencent, investing $1.25 billion for a staggering 25% stake. The new subsidiary will effectively lead the development of multiple popular franchises, such as Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six Siege.

The impactful move comes after the release of Assassin's Creed Shadows on March 20, 2025, marking a significant step for the future of the two gaming giants.

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Ubisoft and Tencent join hands in a multi-billion dollar move after the release of Assassin's Creed Shadows

The new subsidiary announced by Ubisoft will have a valuation of approximately $4.3 billion, which is more than the company's current enterprise value. The new subsidiary will hold the licenses for the IP of several games for a royalty.

Ubisoft announces multi-billion Dollar deal involving Tencent (Image via Ubisoft)

The move has taken the video game industry by surprise, as the two giants have come together within a week after the release of Assassin's Creed Shadows. The title was released on March 20, 2025, and has crossed over three million players within one week, showcasing the company's recent success.

However, despite the game's positive reception, the company has struggled financially over the past few years with underperforming assets and a fluctuating stock value.

Tencent's role in the deal is large, as it is investing $1.25 billion for a 25% stake in the new enterprise. Ubisoft CEO Yves Guillemot recently stated the following regarding the move:

"Today Ubisoft is opening a new chapter in its history. This is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious."

The deal surrounding the new subsidiary is expected to close by the end of 2025. The enterprise will be headquartered in France and owned 100% by Ubisoft.

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