A minority Ubisoft shareholder, 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 a reported Assassin's Creed Mirage DLC partnership with the Savvy Group and undisclosed discussions with Microsoft, EA, and other potential acquirers of Ubisoft IPs, as reported by MergerMarket. Ubisoft has been contacted for comment.
Previously, Bloomberg reported discussions between Ubisoft's Guillemot family and Tencent regarding taking the company private following several high-profile game failures, cancellations, and a share price collapse. Ubisoft stated it would inform the market when appropriate. The company has experienced a prolonged period of underperformance, marked by numerous setbacks including high-profile game flops, layoffs, studio closures, cancellations, and repeated delays. Speculation continues regarding potential proposals, with some suggesting Tencent's reluctance due to the Guillemot family's desire to retain significant control. The lack of a larger, financially capable buyer adds to the challenges.
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Krúpa criticizes the multiple delays of Assassin's Creed, noting the initial July 18, 2024, announcement, subsequent delays, and revised financial guidance. He argues these actions disproportionately harmed retail investors while benefiting institutional investors who purchased at lower prices.
AJ Investments urges frustrated investors to join the May protest, emphasizing the need for transparency and accountability. While acknowledging Ubisoft's strategic review with Goldman Sachs and JP Morgan, Krúpa states the protest aims to ensure a shareholder-value-enhancing outcome. The demonstration will be called off if the review results in such an outcome. AJ Investments also states its readiness to sue Ubisoft for allegedly misleading investors.
This isn't AJ Investment's first action against Ubisoft. Following the disappointing launch of Star Wars Outlaws and a subsequent share price plunge, AJ Investments previously issued a strongly worded open letter to the board, including CEO Yves Guillemot and Tencent, expressing dissatisfaction and urging leadership changes or a sale.
