Ubisoft Raises £1bn Following UK Studio Closure
Deal News | Mar 28, 2025 | Business Cloud
Ubisoft, known for its popular game franchises like Assassin's Creed, has received a significant £1bn investment from Tencent, a Chinese tech company. This investment follows a series of strategic cost-cutting measures, including studio closures in the UK. With this financial injection, Tencent now holds a 25% stake in Ubisoft, reflecting a commitment to revitalizing several flagship franchises by establishing a dedicated subsidiary. Despite job cuts at Ubisoft Leamington and a restructuring at Ubisoft Newcastle, the company aims to enhance the development of its top franchises like Assassin's Creed, Rainbow Six, and Far Cry. The new subsidiary will operate across key studios in Montreal, Quebec, Barcelona, and other locations. Ubisoft's CEO, Yves Guillemot, emphasized the importance of this investment in elevating the company's global standing and fostering creativity. Although Tencent's venture comes at a critical time, given Ubisoft's falling share prices, both companies see potential for growth and profitability in the partnership.
Sectors
- Video Game Industry
- Investment and M&A
Geography
- United Kingdom – Ubisoft made significant decisions regarding its UK operations, including studio closures and restructuring.
- France – Ubisoft is headquartered in France, and the company seeks to revitalize its brands through strategic changes initiated there.
- China – Tencent, a Chinese technology giant, made a substantial investment in Ubisoft, indicating strategic interests from Chinese investors in the global gaming market.
Industry
- Video Game Industry – The primary focus of the article is on Ubisoft, a major player in the video game industry, known for its popular franchises which are set to benefit from strategic investment.
- Investment and M&A – Tencent's acquisition of a 25% stake in Ubisoft marks a significant financial transaction indicative of broader investment trends and M&A activity.
Financials
- £1bn – Tencent's investment amount in Ubisoft to acquire approximately a 25% stake in the company.
- 25% – The proportion of Ubisoft's business that Tencent now owns following its investment.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ubisoft | Target Company | Company | Ubisoft is a renowned video game company, creators of franchises such as Assassin's Creed, Rainbow Six, and Far Cry. |
| Tencent | Investor | Company | Tencent is a major Chinese technology and investment company that has expanded its stake in Ubisoft. |
| Yves Guillemot | CEO of Ubisoft | Person | Yves Guillemot is the CEO of Ubisoft, overseeing major strategic decisions and communications. |
| Martin Lau | President of Tencent | Person | Martin Lau is the President of Tencent, expressing optimism about the investment in Ubisoft. |