March 27 (Reuters) - French videogame maker Ubisoft

said on Thursday it has set up a subsidiary in which

China's Tencent ( TCTZF ) will invest 1.16 billion euros ($1.25

billion).

The new subsidiary, valued at about 4 billion euros, will

bring together the Assassin's Creed, Far Cry and Tom Clancy's

Rainbow Six brands, the group said in a statement. The move is

expected to be completed before the end of 2025, it added.

Ubisoft's shares rose in mid-March after Bloomberg News

reported the videogame maker was seeking investors for a new

entity, with Tencent ( TCTZF ) among the invited bidders.

The new subsidiary would include the teams developing the

Tom Clancy's Rainbow Six, Assassin's Creed and Far Cry

franchises based in the Canadian cities of Montréal, Quebec,

Sherbrooke and Saguenay, and in Barcelona and Sofia, as well as

the back-catalog and any new games currently under development

or to be developed.

"With the creation of a dedicated subsidiary that will

spearhead development for three of our largest franchises and

the onboarding of Tencent ( TCTZF ) as a minority investor, we are

crystalizing the value of our assets, strengthening our balance

sheet, and creating the best conditions for these franchises'

long-term growth and success", Ubisoft CEO Yves Guillemot said

in a statement.

"As we accelerate the company's transformation, this is a

foundational step in changing Ubisoft's operating model that

will enable us to be both agile and ambitious", he added.

Guillemot said the company is committed to building a

sharper, more focused organization--one where talented teams

will take brands to the next level, accelerate the growth of

emerging franchises, and lead innovation in next-generation

technologies and services.

"We see the immense potential for these franchises to

evolve into long-term evergreen game platforms and create

engaging new experiences for gamers", Tencent ( TCTZF ) President Martin

Lau said in a statement.

($1 = 0.9254 euros)