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Ubisoft Spins Off Major Franchises into New Subsidiary with Tencent Support

On Thursday, Ubisoft made a significant announcement regarding the future of three of its most popular gaming franchises: “Assassin’s Creed,” “Far Cry,” and “Rainbow Six.” The company revealed its plans to establish a new subsidiary that will be backed by the Chinese technology giant, Tencent.

This newly formed division will receive substantial funding amounting to $1.25 billion from Tencent. Ubisoft indicated that the focus of this new entity will be to create game ecosystems aimed at ensuring longevity and versatility across multiple gaming platforms.

“Today Ubisoft is opening a new chapter in its history,” stated Yves Guillemot, co-founder and CEO of Ubisoft. He emphasized that this initiative represents a critical step in adapting the company’s operational framework to enhance both agility and ambition. “We are dedicated to establishing robust game ecosystems that maintain relevance over time, develop high-performing brands, and introduce new intellectual properties, all leveraging cutting-edge and emerging technologies. By launching a dedicated subsidiary to advance our largest franchises and welcoming Tencent as a minority investor, we are solidifying our asset value, reinforcing our financial standing, and creating optimal conditions for the sustained growth and success of these franchises.”

This development follows a period of intense speculation surrounding Ubisoft’s potential sale, as the company sought advice on various strategic maneuvers. Additionally, the announcement comes just one week after the release of the latest installment in the “Assassin’s Creed” series, titled “Assassin’s Creed: Shadows.” Set in the backdrop of feudal Japan, the new entry has garnered primarily favorable reviews from critics.

In closing, Guillemot expressed a commitment to refining the organization, aiming for a sharper focus that will empower talented teams to elevate existing brands, foster the growth of emerging franchises, and spearhead innovation in next-generation technologies and services. “Our ultimate goal is to deliver engaging, memorable gaming experiences that surpass player expectations and provide superior value to our shareholders and stakeholders,” he asserted.

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www.thewrap.com