Chinese technology giant Tencent has made a €1.2bn ($1.25bn) investment in a spin-off from Ubisoft, the maker of the Assassin’s Creed video games.
Shenzhen-based Tencent will own about a quarter of the new business, with Ubisoft holding the rest of the new subsidiary, which is valued at around €4bn.
The unit will run some of the French firm’s biggest franchises, including Assassin’s Creed, Far Cry and Tom Clancy’s Rainbow Six.
Tencent, which is one of the world’s biggest video games developers, is also known for its internet-based services, including the hugely popular messaging app WeChat.
“Today Ubisoft is opening a new chapter in its history,” Yves Guillemot, Ubisoft’s co-founder and chief executive said in a statement.
Tencent, which is China’s most valuable company, is now Ubisoft’s second biggest shareholder with a stake of just under 10%.
“We are excited to extend our longstanding partnership with Ubisoft through this investment,” Martin Lau, President of Tencent, said.
Ubisoft said it will now focus on its other marquee titles, including Tom Clancy’s Ghost Recon and The Division.
Ubisoft’s stock market value has fallen sharply in recent years after delays to the launches of new games and falling sales.
That’s despite its shares getting a boost earlier this month as investors welcomed the launch of the latest instalment of the Assassin’s Creed franchise.
The much-anticipated Assassin’s Creed Shadows had been delayed several times.
It followed the disappointing performance of another of the firm’s major titles, Star Wars Outlaws, and concerns from some onlookers about how Ubisoft is being run.
“Ubisoft has all these great games, like Assassin’s Creed, that it’s known for that recently haven’t delivered so much for fans,” video games journalist Shannon Liao told the BBC.
“There are reasons for why that business is now up for grabs and for Tencent it’s an opportunity for them to cash in on these franchises that are so beloved, that have so much street cred for gamers out there.”
The Assassin’s Creed series has sold more than 200 million copies worldwide and, according to a Ubisoft earnings report published last year, generated about €4bn ($4.2bn/£3.3bn) revenue in the decade up to 2024.
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