It's no secret that Ubisoft has been having some financial issues of late. Today the company moved forward with a plan to rectify that by creating a new gaming subsidiary alongside Tencent, which will own 25%.

The new entity is valued at 4.3 billion USD and will include many of Ubisoft's biggest franchises. Those franchises include Assassin's Creed, Far Cry and Rainbow Six. Tencent will invest approximately 1.16 billion Euros in order to acquire their 25%. the new entity will get a royalty from those franchises in exchange for use of the license.

The new entity will include all the development teams working on those mentioned franchises as well as teams working on any back catalog games in those series as well as new games.

Ubisoft CEO Yves Guillemot spoke today sharing his excitement about this development, stating, “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.”

What Comes Next?

What isn't clear at this point is what will become of the main Ubisoft business as well as those IPs not included in the sale. Ubisoft has reportedly been looking to sell off many of their IPs. Is this the first step or is there more to come? I found it interesting that this new entity didn't include all of the Tom Clancy IP, so it's something to watch.

While Assassin's Creed Shadows is performing very well, amassing over 2 million players in just its first couple of days, it is not enough to save Ubisoft. Outside of the 3 franchises that just got split off they don't have an IP doing overly well. IPs such as The Division and Ghost Recon could, however we haven't seen much new from either one of late.