A minority shareholder in Ubisoft, AJ Investments, plans a protest outside the company's Paris headquarters. CEO Juraj Krúpa accuses Ubisoft of mismanagement, citing declining shareholder value, poor operational execution, and a failure to adapt to market trends. Krúpa alleges a lack of transparency regarding key decisions, including an Assassin's Creed Mirage DLC partnership with the Savvy Group and undisclosed discussions with Microsoft, EA, and other potential acquirers of Ubisoft's intellectual properties, as reported by MergerMarket. Ubisoft has been contacted for comment.
Previously, Bloomberg reported discussions between Ubisoft's Guillemot family and Tencent about taking the company private following several high-profile game failures, cancellations, and a plummeting share price. While those talks were exploratory, Ubisoft stated it would inform the market if appropriate.
Ubisoft's recent struggles include numerous game flops, layoffs, studio closures, cancellations, and repeated delays. Rumors persist about the board's considerations, with speculation that Tencent's interest may be waning due to the Guillemot family's desire to retain significant control. The lack of a larger, financially capable buyer poses a challenge.
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Krúpa criticizes the multiple delays of Assassin's Creed, impacting the company's financial guidance and causing stock declines that disproportionately affected retail investors. He believes this was predictable and benefited larger institutional investors.
AJ Investments urges frustrated investors to join the May protest, aiming to pressure management during their Goldman Sachs and JP Morgan-advised strategic review. The protest will be called off if the review results in actions that genuinely increase shareholder value. AJ Investments also states its readiness to sue Ubisoft for allegedly misleading investors.
This isn't AJ Investment's first action. In September, they issued an open letter to Ubisoft's board, including CEO Yves Guillemot and Tencent, expressing dissatisfaction with the company's performance and share price, urging leadership changes and considering a sale. This followed the disappointing launch of Star Wars Outlaws.
