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 decision-making, including the alleged undisclosed discussions with Microsoft, EA, and other publishers about potential franchise acquisitions, as reported by MergerMarket. He also points to the undisclosed partnership for Assassin's Creed Mirage DLC with the Savvy Group. Ubisoft has been asked for comment.
Previously, Bloomberg reported discussions between Ubisoft's Guillemot family and Tencent about taking the company private. These talks were exploratory, and Ubisoft stated it would inform the market accordingly. Ubisoft has faced a prolonged period of challenges, including high-profile game flops, layoffs, studio closures, cancellations, and numerous delays. Speculation continues regarding board proposals, with reports suggesting Tencent's reluctance to fully commit due to the Guillemot family's desire to retain significant control. The lack of a larger buyer capable of rescuing Ubisoft is also a concern.
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Krúpa criticizes the multiple delays of Assassin's Creed, impacting the stock price and disproportionately affecting retail investors. He claims these delays, and the subsequent revised guidance, benefited larger institutional investors. AJ Investments urges frustrated investors to join their May protest, aiming to pressure Ubisoft into actions that increase shareholder value. They will call off the protest if management's strategic review, advised by Goldman Sachs and JP Morgan, demonstrably enhances shareholder value. AJ Investments also states its readiness to sue Ubisoft for allegedly misleading investors.
This isn't AJ Investment's first action. Following the underperformance of Star Wars Outlaws, they previously issued an open letter to Ubisoft's board, including CEO Yves Guillemot and Tencent, expressing dissatisfaction and urging leadership changes or a sale.
