Ubisofts New Division Faces Uncertainty as Shares Continue to Plummet

Last week, Ubisoft officially confirmed rumors about the establishment of a new division responsible for major franchises like Assassin’s Creed, Far Cry, and Rainbow Six. Following this announcement, Ubisoft shares plunged by 19%. Insider Tom Henderson, who spoke with several investors, revealed the reasons behind the steep decline in detail.

During the conversation, one anonymous investor remarked that the stock drop stems from uncertainty about the structure of the new company and the extent to which Tencent might intervene with its financial contributions. It’s worth noting that Tencent plans to invest €1.16 billion for a minority stake of 25%. Another investor expressed skepticism regarding this restructuring, claiming it would likely result in minimal long-term changes unless Ubisoft undergoes more significant transformations.

Henderson also spoke with former employees of Ubisoft who voiced concerns about poor internal communication. Some of them believed the deal with Tencent was hastily made, as Ubisoft had leverage during negotiations following the successful launch of Assassin’s Creed Shadows. Consequently, they felt that the company lacked a clear plan moving forward.

This speculation was confirmed in an internal letter from Ubisoft that was shared with Henderson. He was quick to disclose its contents:

Christophe Derennes, Managing Director

In summary, the current plans indicate that the new division will not operate autonomously. It will be directly overseen by the management of Ubisoft, consisting of the same personnel from the existing parent company. Specifically, it will bring together teams from Ubisoft Québec, Ubisoft Saguenay, and Ubisoft Sherbrooke. At the same time, Ubisoft Montréal will be split into two segments—one will join the subsidiary while the other will remain in its current location. Preliminary estimates suggest that this process should be completed by the end of 2025.