Ubisoft, the legendary videogame giant behind last week’s release of Assassin’s Creed Shadows, has received a mammoth £1bn from Chinese technology investor Tencent after cutting its UK workforce.
The investment means that Tencent now owns around 25% of the business as it looks to run some of the French-based firm’s biggest franchises, including Assassin’s Creed, Tom Clancy’s Rainbow Six Siege and Far Cry, from a separate division.
The news comes shortly after the firm announced plans to permanently close Ubisoft Leamington, whilst Ubisoft Newcastle has undergone a restructure which has resulted in job cuts.
The move, which is part of a global cost reduction programme, is said to have put 100 jobs at risk.
Upon the announcement of the investment, an internal memo from Ubisoft CEO Yves Guillemot was leaked to the media.
It read: “I’m pleased to share an important announcement that will mark a milestone in Ubisoft’s history.
“Following a process to review different strategic options for Ubisoft’s future, we have just signed an exceptional agreement with one of our trusted shareholders, Tencent, with whom we have a solid relationship.
“Their €1.16bn investment will benefit all of Ubisoft. We will be able to firmly take back control of our future and renew with the serenity needed to create the best games.
“The terms of this partnership are straightforward: we will establish a dedicated subsidiary within Ubisoft that will bring together our three most powerful franchises: Assassin’s Creed, Rainbow Six and Far Cry. This subsidiary will gather the teams working on these brands, primarily in the studios of Montreal, Quebec City, Sherbrooke, Saguenay, Barcelona, and Sofia.
“Tencent will be a 25% shareholder of this new subsidiary, with the aim of boosting these franchises so they become undisputed global icons.
“This investment will also give us the means to accelerate the changes we’ve been discussing for several months across the group – changes that many of you have been longing for… to put the creation of unique games and player satisfaction back at the heart of our daily work. This is what will enable us to return to a higher level of profitability.”
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Marie-Sophie De Waubert, chief studios and portfolio officer, issued a follow-up email to reassure staff in Montreal, Quebec City, Sherbrooke, Saguenay, Barcelona and Sofia of their job status.
“Tencent’s investment is a strong testament to their trust in our ability to grow Assassin’s Creed, Far Cry, and Rainbow Six. This is a direct result of the incredible work you’ve done in making these franchises iconic, as a lead or major codev studio,” she wrote.
“I also want to be clear: if you’re not currently working on these brands, it doesn’t mean your work matters any less. This agreement will benefit all of Ubisoft, giving us the means to spark more innovation and creativity across the board. This marks the beginning of a new chapter, and you play a vital role in shaping it.
“In the coming weeks and months, we will work hard to build the best organization possible – for Ubisoft, for our teams, and for our players.
“Of course, this brings some uncertainty and questions. Right now, we may not have all the detailed answers, but we are committed to communicating with you transparently and regularly.”
The controversy regarding the UK cuts has receded somewhat following reports that the firm’s newest release has become a hit.
The Assassin’s Creed UK X account confirmed that the game had seen over 3 million players since launch.
It also saw the second highest day one sales revenue in Assassin’s Creed franchise history, behind only Assassin’s Creed Valhalla; Ubisoft’s biggest day one ever on the PlayStation Store, and over 40m hours have been played on the game so far in a week.
However, the firm’s share price has plummeted in recent years.
Just over four years ago, in February 2021, its share price had risen to 84.6 cents. However, its share price as of today is 14.02 cents.
Despite this, Martin Lau, president of Tencent, was more than positive when speaking about his company’s investment.
He said: “We are excited to extend our longstanding partnership with Ubisoft through this investment.
“We see the immense potential for these franchises to evolve into long-term evergreen game platforms and create engaging new experiences for gamers.”