Ubisoft is spinning off Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six into a subsidiary backed by Tencent, according to an announcement on Thursday. The Chinese gaming giant will invest €1.16 billion (~$1.3 billion) for a 25 percent stake in the carveout, which will have a total value of about €4 billion (~$4.3 billion).

Tencent ( OTCPK:TCEHY) will invest €1.16B to take a 25% stake in the new unit, which would value it at pre-money enterprise value around €4B -- significantly higher than Ubisoft's valuation as a company. The unit is based on Ubisoft's Assassin's Creed, Far Cry, and Tom Clancy's Rainbow Six brands.

In a bid to escape financial woes, French games giant Ubisoft said Thursday it was creating a new subsidiary around its most popular franchises such as "Assassin's Creed" in partnership with China's Tencent.