Ubisoft’s claim that Tencent’s investment in its new subsidiary, Vantage Studios, was “imminent” has proven accurate. The new entity has been assigned a pre-money enterprise valuation of €3.8 billion, with Ubisoft CEO Yves Guillemot calling the deal’s completion a landmark moment for the publisher.

“Today’s closing crystallizes the value of our world-class IPs and represents a key milestone in Ubisoft’s ongoing transformation,” Guillemot said.

Tencent is investing €1.16 billion ($1.25 billion) to help reduce Ubisoft’s debt and support the creation of Vantage Studios, a newly formed subsidiary that will manage some of the company’s biggest franchises, including Assassin’s Creed, Far Cry, and Rainbow Six.

The new division will be led by co-CEOs Christophe Derennes and Charlie Guillemot, the latter being the son of CEO Yves Guillemot.

Ubisoft expects to finalise the organizational structure of Vantage by the end of the year. The subsidiary will be made up of “creative houses” designed to operate as autonomous, efficient, and accountable business units, each with its own leadership team, creative direction, and strategic roadmap.

The announcement was included in Ubisoft’s first-half FY2025–26 financial report, released this morning following a delayed earnings update and a temporary trading halt.

“The closing of our strategic transaction with Tencent—which will see Tencent become a minority shareholder in our new subsidiary, Vantage Studios—is now imminent, as all conditions precedent have been fulfilled,” Guillemot said.

“This represents a pivotal step in Ubisoft’s transformation, materially strengthening our financial position through €1.16 billion in cash proceeds, allowing the Group to deleverage as planned. It will also enable Vantage Studios to accelerate the development of our three flagship IPs under a dedicated leadership structure.”

Ubisoft delivers Q2 net bookings well above predictions

Ubisoft reported that Q2 net bookings exceeded expectations, rising 39 percent year over year to €490.9 million, surpassing prior guidance of approximately €450 million.

“Despite a highly competitive environment, Ubisoft delivered net bookings above guidance, driven by stronger-than-expected partnerships that highlight the strength and reach of our brands,” Guillemot said. “Our portfolio showed mixed performance this quarter, with softer trends for Rainbow Six Siege as it enters a new phase in a crowded FPS market, balanced by solid results across the rest of the catalog.”

He added that the Assassin’s Creed franchise outperformed expectations, reinforcing its long-term engagement potential, while The Division 2 continued to see strong results thanks to the momentum of the Battle for Brooklyn DLC. The title’s first-half bookings have already surpassed its total bookings from last year.

Ubisoft also noted that Assassin’s Creed Mirage has reached 10 million players following the release of Valley of Memory, a free story expansion set in AlUla, Saudi Arabia, which has reportedly received backing from the Saudi government.

The publisher confirmed its cost-cutting measures remain “on track,” resulting in the departure of around 1,500 employees over the past year. Ubisoft clarified that not all exits were layoffs, citing a recently launched targeted voluntary leave program and proposed restructuring at its Nordic studios.

Ubisoft’s cost-reduction plan aims to deliver at least €100 million in additional fixed-cost savings by FY2026–27 compared with FY2024–25, and the company said progress remains strong.

“The transaction also provides €1.16 billion in proceeds that deleverage the Group, reinforce our balance sheet, and support selective investment opportunities across the company,” Ubisoft said. “Vantage Studios, fully operational since October 1 under a dedicated leadership team, embodies autonomy, focus, and player centricity, with clear accountability. It brings our Creative Houses model to life with the ambition of accelerating our flagship franchises toward becoming annual billion-euro brands.”