A minority shareholder in Ubisoft, led by Juraj Krúpa of AJ Investments, is organizing a protest outside the company's Paris headquarters. The protest stems from accusations that Ubisoft has failed to disclose alleged discussions with major players like Microsoft, EA, and other publishers interested in acquiring its franchises. Krúpa claims that Ubisoft is "horribly mismanaged by current management" and is demanding a "clear roadmap for recovery" to address issues such as declining shareholder value, lackluster operational execution, and failure to adapt to market trends.
In a statement seen by IGN, Krúpa criticized Ubisoft for a lack of transparency in its decision-making process, specifically mentioning undisclosed discussions and an alleged partnership for Assassin's Creed Mirage DLC with the Saudi investment firm Savvy Group. He also referenced a restricted article from MergerMarket that alleged talks between Microsoft, EA, and others interested in Ubisoft's IPs, which he claims were not disclosed to the public.
IGN has reached out to Ubisoft for a comment on these allegations. Previously, in October, Bloomberg reported exploratory talks between Ubisoft's founding Guillemot family and shareholder Tencent about taking the company private, following a series of high-profile flops, game cancellations, and a plummeting share price. Ubisoft indicated it would inform the market of any significant developments.
Ubisoft has been facing a challenging period marked by numerous delays, layoffs, studio closures, and game cancellations. Amid these struggles, rumors persist about the board's considerations, including Tencent's reluctance to invest further due to the Guillemots' desire to retain significant control over the company. Without Tencent's backing, few entities might have the resources to undertake a rescue operation for Ubisoft.
Krúpa's statement also highlighted the delays of Ubisoft's pivotal game, Assassin’s Creed Shadows, initially set for release on July 18, 2024, then postponed to November 15, 2024, and finally rescheduled for March 20, 2025. These delays led to revised financial guidance, causing significant stock declines that primarily affected retail investors, while benefiting corporate and institutional investors who could capitalize on distressed prices.
Believing that Ubisoft's management has not communicated effectively with shareholders, AJ Investments is rallying all investors frustrated with the company's stagnant stock performance and lack of decisive action to join the protest planned for May. Krúpa noted that Ubisoft's management, advised by Goldman Sachs and JP Morgan, is conducting a financial review of strategic options, with results expected soon. He stated that the demonstration would be called off if the review leads to actions that genuinely enhance shareholder value.
Krúpa emphasized the need for Ubisoft to operate with transparency and accountability to maximize shareholder value, highlighting the company's underperformance compared to industry peers. AJ Investments has threatened legal action against Ubisoft for allegedly misleading investors.
This isn't the first instance of AJ Investments voicing discontent with Ubisoft. In September, following the disappointing release of Star Wars Outlaws, the investor sent an open letter to Ubisoft's board, including CEO Yves Guillemot and Tencent, urging a change in leadership and consideration of a sale due to the significant drop in share price post-launch.
