This deal is expected to finalize within 2025, following a competitive selection process that also involved Microsoft and EA.

The new unit aims to enhance narrative solo experiences, expand multiplayer offerings, increase the frequency of content releases, and introduce free-to-play elements, along with more social features in its games.

The decision to create this subsidiary comes on the heels of disappointing performances from recent game launches, including Star Wars Outlaws, which missed sales targets.

Ubisoft's recent financial struggles, including a reported 52% decline in fiscal third-quarter net bookings, have prompted the company to explore various strategic options, including potential partnerships.

Ubisoft has announced the establishment of a new subsidiary dedicated to its major franchises, including Assassin's Creed, Far Cry, and Rainbow Six, backed by a significant investment of €1.16 billion ($1.3 billion) from Tencent.

Despite recent challenges, Ubisoft celebrated the successful launch of Assassin's Creed Shadows, which garnered over three million players shortly after its release on March 20, 2025.

The company has been undergoing cost-cutting measures and workforce reductions in response to project failures, highlighting the urgency for this new venture to succeed.

Ubisoft's management has faced scrutiny due to allegations of misconduct involving former executives, which has further complicated the company's reputation.

Looking ahead, Ubisoft is focused on restructuring and diversifying its operations to adapt to evolving market dynamics and consumer preferences.

The binding agreement for the Tencent investment was unanimously approved by Ubisoft's board on March 27, 2025, marking a significant step in the company's restructuring efforts.

Ubisoft's CFO mentioned multiple expressions of interest in the carve-out process, indicating a competitive valuation and strong investor interest.

As the gaming industry evolves, Ubisoft aims to leverage its intellectual properties and improve its financial standing by engaging more deeply with the entertainment market.