Ubisoft Entertainment SA’s US-listed shares soared as much as 20% 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.

French videogame maker Ubisoft said on Thursday it has set up a subsidiary in which China's Tencent will invest 1.16 billion euros ($1.25 billion).

Ubisoft is spinning off some of its top franchises, including "Assassin’s Creed," "Far Cry" and "Rainbow Six," into a new subsidiary funded by Tencent.