Ubisoft just made a big move by setting up a new subsidiary with a huge €1.16 billion investment from Tencent, giving Tencent a 25% stake. This deal is all about boosting the development of Ubisoft’s biggest game franchises.
Christophe Derennes, the Zone 1 Managing Director, shared an Ubisoft internal memo that highlights the company’s first steps.
While many details are still up in the air, the memo gives a glimpse of what’s coming.
Let’s break it down and see what this means for Ubisoft’s future.
Details from Christophe Derennes’ Ubisoft Internal Memo
According to an internal memo, Christophe Derennes, Ubisoft’s Zone 1 Managing Director, shared details about a new subsidiary created in partnership with Tencent.
This new branch will bring together three of Ubisoft’s biggest franchises—Rainbow Six, Assassin’s Creed, and Far Cry.
Even though Tencent holds a minority stake, Derennes made it clear that the new group will still be a core part of Ubisoft, with the same teams running the show.
He also pointed out that this marks a major shift for the company, giving them a fresh start after some tough times.
The memo explained upcoming changes in structure and organization, mainly in Zone 1, as part of the franchise transition. Once the agreement gets finalized and legally approved, the Quebec, Saguenay, and Sherbrooke studios will fully shift to the new company.
Here is the memo:
Meanwhile, Montreal’s project teams will be split between the new subsidiary and Ubisoft. Studios in Toronto, Winnipeg, Red Storm, and Blue Mammoth will keep running as part of Ubisoft.
Derennes shared the following step-by-step plan for the transition to make things smoother:
- Step one: They’ll announce the decision and initiate the planning of the phase.
- Step Two: Until summer, they’ll focus on meetings and discussions to figure out how the new setup will work and what role the current organization will play.
- Step Three: Finally, they’ll roll out the new model, but the full transition will take some time.
Right now, a lot of details—like leadership roles and how studios will be affected—are still up in the air. These will be worked out in the coming months.
Derennes reassured everyone that Ubisoft is staying focused on making great games, and that employees’ creativity and hard work are key to its success.
Investor and Employee Reactions on the Announcement
Right after the news dropped, Ubisoft’s stock took a massive 19% hit as investors worried about what this meant for the company. But things turned around quickly—once more details came out, shares jumped back up by over 10%.
Meanwhile, employees aren’t sure what to expect. Some fear job cuts, while others feel left in the dark about the whole deal.
With Assassin’s Creed Shadows doing so well, pulling in 3 million players and scoring the second-biggest launch revenues in the series. But not everyone at Ubisoft is celebrating. Some employees feel the decision was made too quickly, and now there’s a lot of doubt about the company’s next move.
