In a follow-up to Ubisoft and Tencent banding together to create a new subsidiary to house their biggest IPs under one roof, we’ve discovered that not much has actually happened since the announcement on March 27, 2025. According to an anonymous source, Ubisoft’s stock has dropped a staggering 19% in just a few days (surprised? Yeah, me neither), thanks to concerns over Tencent’s influence and the overall direction of the company.

Employees Left in the Dark

Even Ubisoft employees aren’t sure what’s going on. Multiple reports point to poor internal communication, with only a few vague emails addressing the shift. One insider told Insider Gaming that the entire thing feels rushed and that studios are unsure what to expect. That confusion is echoed in a lengthy internal email meant to provide clarity, but it raises more questions than it answers.

The message, shared by Zone 1’s Managing Director, Christophe, tries to reassure staff that Ubisoft and its studios will remain operational, even as the restructuring takes shape:

“Hello all –

By now you have seen the message from Yves about the decision to create a new subsidiary that encompasses the three biggest Ubisoft brands: Rainbow 6, Assassin’s Creed, and Far Cry. This new entity will remain part of the Ubisoft family and will continue to be operated by us, with Tencent being a minority shareholder. This important decision is a key turning point for us after the last few difficult years and is an opportunity for Ubisoft to rebuild stronger than ever.

What will this mean for us in Zone 1? Certainly, we can expect some major changes in terms of structure and organization, since these three brands compose a significant part of Zone 1’s population. For now, what we can say is that once the agreement is finalized and confirmed by legal authorities, our Quebec, Saguenay and Sherbrooke studios will move entirely to the new entity, while our Montreal project teams will be spread between the new entity and the current Ubisoft organization. Our studios in Toronto, Winnipeg, as well as Red Storm and Blue Mammoth, will continue evolving in the current organization.

It is still very early in the process and I know you must have many questions, but the short answer to the “what’s next” question is: we need to take the time to figure this out and the next months will be dedicated to determining the transition plan.

Step one was this announcement, where we shared the decision and kicked off the planning phase.

Step two will be from now until this summer, where we will work out how to support the new entity with the existing organization and determine what the new model looks like on both sides. There will be a variety of guided consultations and discussions over the next few months, and your leaders will be involved as we take this opportunity to set up Ubisoft and the new entity for success.

Step three will be the implementation of the new model, with a longer period to complete the transition. Of course, there are many things that have not been determined yet such as who and how we will manage the new entity, what will happen to the structure we have created around the Zone, what will be the impact on the studios, and more. While there are many things that will only be defined during the planning process over the next few months, I can assure you that Ubisoft will continue to be a world class creator of video games, and your great ideas and energy will always be a critical part of our success.

I’m sure you have many questions for which we have no answers yet. Your MDs have also been just recently briefed on this announcement, and like me, don’t have any more information than I do. However, as always, we will try to keep you updated on our progress as we go along and share the latest decisions as soon as we can. In the meantime, we are looking forward to this opportunity of rebuilding a new and stronger Ubisoft, and of maximizing the contributions of all our people.

Thank you for your patience and resilience: living through change is never simple, and this is a big (and important) one for us and for the future of Ubisoft. My ask to you is to keep focusing on what you do best and where you have the biggest impact: making great games that enrich the lives of our players. I’m thankful to be able to count on your cooperation as we move forward together.

Christophe
Managing Director, Zone 1″

But here’s the kicker: the email basically says, “We’re figuring it out as we go.” So, here are the steps so far. Step one: announcement. Step two: months of deliberation. Step three? Implementation, eventually. Key decisions like who will lead the new entity or how studios will collaborate remain up in the air.

Investor Confidence? Not Great

Investors aren’t thrilled either. That 19% stock dip? Oof. One anonymous investor suggested it’s because no one understands how the new Ubisoft structure will function with Tencent as a minority shareholder. Others believe the move is more of a temporary fix rather than a long-term strategy, claiming it does little to address the deeper issues Ubisoft has been facing for years.

Final Thoughts

So, what does all this mean for Ubisoft’s biggest IPs? For now, not much, at least on the surface. The Tencent deal isn’t expected to finalize until the end of 2025, which means we’re in for several months of speculation and probably more vague communications.

From the outside, this whole situation feels like a massive shift made without a solid plan in place. Employees are confused (rightfully so), investors are nervous (again, same), and fans are watching closely, hoping that nothing bad happens to their favorite games. One thing’s clear: Ubisoft’s next steps will either make them better or a whole lot messier.