A minority shareholder in Ubisoft, represented by Juraj Krúpa, CEO of AJ Investments, is organizing a protest outside the company's Paris headquarters. Krúpa accuses Ubisoft of mismanagement and lack of transparency, particularly regarding alleged discussions with Microsoft, EA, and other publishers interested in acquiring Ubisoft's franchises. In a statement seen by IGN, Krúpa criticized Ubisoft's current management for declining shareholder value, poor operational execution, and failure to adapt to market trends. He also claimed that Ubisoft has not disclosed important information, such as a partnership for an Assassin's Creed Mirage DLC with the Saudi investment firm Savvy Group and potential discussions about selling IPs to other companies.
IGN has reached out to Ubisoft for comment on these allegations. Previously, in October, Bloomberg reported that Ubisoft's founding Guillemot family and shareholder Tencent were exploring the possibility of taking the company private, following several high-profile flops, game cancellations, and a significant drop in share price. At that time, Ubisoft stated it would inform the market of any developments when appropriate.
Ubisoft has been struggling with a series of challenges, including high-profile flops, layoffs, studio closures, and numerous game delays. Rumors persist about the company's strategic considerations, with some reports suggesting Tencent's reluctance to proceed due to the Guillemot family's desire to maintain control. Without Tencent, few other entities have the financial capacity to take on Ubisoft's current state.
Krúpa specifically mentioned the delays of Ubisoft's crucial game, Assassin's Creed Shadows, which was initially set for release on July 18, 2024, then delayed to November 15, 2024, and finally postponed to March 20, 2025. These delays, according to Krúpa, led to significant stock declines, adversely affecting retail investors while benefiting corporate and institutional investors like Credit Agricole, Goldman Sachs, Morgan Stanley, and others.
AJ Investments is rallying all frustrated Ubisoft shareholders to join the May protest, highlighting the prolonged stagnation in the company's stock performance and the management's lack of decisive action. Krúpa noted that Ubisoft's management, with the help of Goldman Sachs and JP Morgan, is reviewing potential strategic options. He hopes this review will lead to actions that enhance shareholder value, promising to call off the demonstration if the outcomes are satisfactory.
Krúpa emphasized the need for Ubisoft to operate with transparency and accountability, stating that the company has underperformed compared to its industry peers. AJ Investments is prepared to sue Ubisoft for misleading investors if necessary. This isn't the first time AJ Investments has voiced its concerns; in September, following the disappointing release of Star Wars Outlaws, they issued an open letter urging a change in leadership and considering a sale.
For several years, Ubisoft has been navigating a challenging landscape, with its performance and strategic decisions under intense scrutiny from investors and the gaming community alike.
