Ubisoft and Tencent are forming a new company that will take control of its most successful franchises: Assassin's Creed, Far Cry, and Rainbow Six

Ubisoft and Tencent have announced a new "dedicated subsidiary" that will "will focus on building game ecosystems designed to become truly evergreen and multi-platform" in the Assassin's Creed, Far Cry, and Rainbow Six brands.

"As we accelerate the company’s transformation, this is a foundational step in changing Ubisoft’s operating model that will enable us to be both agile and ambitious," Ubisoft CEO Yves Guillemot said in a statement. "We are focused on building strong game ecosystems designed to become evergreen, growing high-performing brands and creating new IPs powered by cutting-edge and emerging technologies.

"With the creation of a dedicated subsidiary that will spearhead development for three of our largest franchises and the onboarding of Tencent as a minority investor, we are crystalizing the value of our assets, strengthening our balance sheet, and creating the best conditions for these franchises’ long-term growth and success. With its dedicated and autonomous leadership team, it will focus on transforming these three brands into unique ecosystems."

The announcement of the new subsidiary follows a review of the company's business strategy and negotiations with Tencent that began in 2024 and took shape earlier this month in rumors that the two were looking at forming a new business entity to manage Ubisoft's biggest properties. It will also seemingly leave the Guillemot family in control, which was reportedly a sticking point in negotiations: Tencent will hold a minority stake in the venture of roughly 25%, with an investment of €1.16 billion ($1.25 billion).

The subsidiary will have a "dedicated leadership team" and board of directors, "focused on enhancing creative vision and streamlining operations, with the authority to make swift, high-impact decisions across development, marketing, and distribution." It doesn't sound like OG Ubisoft is going completely hands-off, though: In a conference call, Ubisoft chief financial officer Frederick Duguet said the subsidiary's board "will be controlled by Ubisoft, so Ubisoft will continue controlling and consolidating this entity."

"We are excited to extend our longstanding partnership with Ubisoft through this investment, which reflects our continued confidence in Ubisoft’s creative vision and exceptional talent to drive sustained success in the industry," Tencent president Martin Lau said. "We see the immense potential for these franchises to evolve into long-term evergreen game platforms and create engaging new experiences for gamers."

Details on how exactly this will impact Ubisoft going forward haven't been revealed: The new subsidiary will include Assassin's Creed, Far Cry, and Rainbow Six development teams in Montreal, Quebec, Sherbrooke, Saguenay, Barcelona, and Sofia, for instance, but the number of employees who will transfer over to the new entityt—or, it must be said, be laid off—remains to be determined. Ubisoft said it will have more information to share "in the coming months." The agreement is also subject to regulatory approval: The announcement says the transaction is expected to be completed by the end of 2025.