Tencent will invest 1.16 billion euros to buy a 25% stake in a new subsidiary of French game developer Ubisoft.

This comes after Ubisoft announced that it will split its flagship game IP series, including Assassin's Creed, Rainbow Six and Far Cry, and their teams to create a subsidiary valued at around €4 billion.

The subsidiary will be backed by Chinese gaming and social media giant Tencent, which is offering a €1.16 billion investment in exchange for a 25% stake in it.

The investment from Tencent, Ubisoft said in an announcement, will be used to strengthen Ubisoft's balance sheet, including repaying group debt and aiding the new company's operations.

In addition, Ubisoft will retain 100% of the subsidiary's creative control, IP ownership and business decision-making power, and will only grant the subsidiary "a worldwide, exclusive, irrevocable, perpetual license" in exchange for royalties.

Tencent will have a non-voting observer seat on the board of directors of the Ubisoft subsidiary, and will have veto power over major asset disposals, but will not interfere in the company's operations.

In response, Tencent president Martin Lau said, "We are excited to extend our longstanding partnership with Ubisoft through this investment, which reflects our continued confidence in Ubisoft's creative vision and exceptional talent to drive sustained success in the industry."

"We see the immense potential for these franchises to evolve into long-term evergreen game platforms and create engaging new experiences for gamer," he added.