Ubisoft Entertainment SA shares jumped as much as 10% after the video game maker said it will carve out a unit including Assassin’s Creed, Far Cry and Tom Clancy’s Rainbow Six into a subsidiary with an enterprise value of about €4 billion ($4.

Ubisoft shares surged on Friday after the French video game publisher announced a deal to spin out some of its best-selling franchises.

Tencent Holdings will invest €1.16 billion to acquire a 25% stake in this new entity, which will hold the licenses for the intellectual property of the games.

Ubisoft shares reversed gains in afternoon trade on Friday after rising as much as 12% earlier on plans to set up a subsidiary to house three of its popular video game franchises.

Shenzhen-based Tencent, which owns the popular messaging app WeChat, will hold about a quarter of a new subsidiary.

Chinese technology giant Tencent is taking a €1.2bn stake in a new spin-off from Ubisoft, as the struggling French games developer attempts to shore up its balance sheet. The deal values a new subsidiary that will run Ubisoft’s top franchises — including Assassin’s Creed,

Chinese gaming publisher Tencent has invested €1.16 billion in Ubisoft's newly established subsidiary, acquiring a 25% stake, the French gaming giant

Assassin's Creed creator said on Thursday it had set up a unit valued at around 4 billion euros in which Tencent will invest 1.16 billion euros ($1.25 billion), and which will bring together the Assassin's Creed,

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. Ubisoft's shares rose in mid-March after Bloomberg News reported the videogame maker was seeking investors for a new entity,