Tencent, the Chinese technology behemoth, has invested €1.2 billion ($1.25 billion) in a spin-off from Ubisoft, the developer of the Assassin’s Creed video games.

Tencent, which is headquartered in Shenzhen, will retain approximately 25% of the new business, while Ubisoft will hold the remaining 25%. The new subsidiary is estimated to be worth approximately €4 billion.

The French company’s largest franchises, such as Tom Clancy’s Rainbow Six, Far Cry, and Assassin’s Creed, will be managed by the unit.

Tencent, a global leader in the development of video games, is also recognized for its internet-based services, such as the highly successful messaging application WeChat.

In a statement, Yves Guillemot, the co-founder and CEO of Ubisoft, declared that the company is commencing a new chapter in its history.

Ubisoft’s second-largest shareholder is Tencent, the most valuable corporation in China, with a stake of just under 10%.

Martin Lau, President of Tencent, expressed his enthusiasm for the opportunity to further our established partnership with Ubisoft through this investment.

Ubisoft has announced that it will now concentrate on its other notable titles, such as The Division and Tom Clancy’s Ghost Recon.

Ubisoft’s stock market value has experienced a significant decline in recent years as a result of declining sales and delays in the release of new titles.

This is in spite of the fact that its shares experienced a surge earlier this month as investors embraced the release of the most recent installment of the Assassin’s Creed franchise.

The highly anticipated Assassin’s Creed Shadows had been postponed on numerous occasions.

It immediately followed the underwhelming performance of another of the company’s significant titles, Star Wars Outlaws, and apprehensions from certain observers regarding Ubisoft’s management.

Shannon Liao, a video games journalist, stated to the BBC, “Ubisoft is renowned for its exceptional games, such as Assassin’s Creed, but its recent releases have not been as satisfying for fans.”

“There are several reasons why that business is currently available for acquisition, and for Tencent, it presents an opportunity to capitalize on these franchises that are so beloved and have such a strong reputation among gamers.”

The Assassin’s Creed series has sold over 200 million copies worldwide and, according to a Ubisoft earnings report published last year, generated approximately €4bn ($4.2bn/£3.3bn) in revenue during the decade leading up to 2022.