Ubisoft management seems unsure on what exactly will happen as a result of the Tencent deal, and employees are concerned about more layoffs and cuts.

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.

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

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.

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

Ubisoft has announced the establishment of a dedicated subsidiary based on its Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six brands, spearheaded by an investment of €1.16

The market seems to have responded positively to the announcement of the new agreement between Tencent and Ubisoft. Ubisoft’s stock prices have significantly increased, with a 12%

Ubisoft's stock price has fallen by double digits, which has erased the value it gained in the days after the new Tencent deal was announced.

Chinese tech giant Tencent will invest €1.16 billion ($1.25 billion) for a 25% stake in the newly formed unit, which will include the Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six brands. The deal values the subsidiary at €4 billion, including debt, Ubisoft said in a statement.