Ubisoft’s minority shareholders are accusing them of failing to disclose any alleged arguments with Microsoft, EA and other publishers that are said to be reportedly interested in buying the franchise.
In a statement seen by Passthecontroller, AJ Investments CEO Juraj Krúpa argued that Ubisoft is “terribly mismanaged by current management,” and hopes that a “clear roadmap for recovery” from senior teams will address “decreased shareholder value, inactive operational implementation, and inability to effectively adapt to market trends.”
Krúpa argued that Ubisoft is not transparent about decision-making and accused the company of “hiding information.” Assassin’s Creed Mirage DLC partnership with Saudi Arabian investment company Savvy Group.
The shareholders also pointed to a restricted article published by the business investment platform Mergermarket, which claimed to be “a discussion between Microsoft, EA, and others interested in obtaining IPS from Ubisoft.” “Management did not inform the public about these procedures either,” Kurpa allegedly.
Passthecontroller reached out to Ubisoft for comment.
In October, Bloomberg reported that Ubisoft’s founding Guillemott family and shareholder Tencent were discussing to make the company private following the numerous well-known flops, game cancellations and the collapse of the company’s stock price. At the time, the talks were merely exploratory and Ubisoft told Passthecontroller “we will notify the market if necessary.”
For several years, Ubisoft has been in a strange, slow spiral with many famous flops, layoffs, studio closures, game cancellations, and post-delay delays.
Meanwhile, rumors about the exact proposal the board is considering have come to light in part of the media that has raised the idea that Tencent is increasingly reluctant to embrace Ubisoft, as the Guillemot family insists on maintaining a significant amount of control. Santencent is large and rich enough to spend the cash needed to save Albatros Ubisoft.
“The management first postponed the Assassin’s beliefs on July 18, 2024 (which should save the company and its finances),” Krúpa’s statement said. “On that day, Ubisoft confirmed the year-round guidance and the release of AC Shadows on November 15th, 2024. Just (a) a few months later, in September 2024, Ubisoft again delayed the game and revised its guidance.
“After the third delay, the game will finally be released on March 20, 2025. These delays and revised guidance have harmed retail investors who have limited resources to manage their positions accordingly.
Though trusting managers did not “appropriately” communicate with shareholders, AJ Investments is looking for all investors who are unhappy with the long-term stagnation of Ubisoft’s stock performance and the lack of decisive action from the management team to take part in the protest in May.
“We recognize that Ubisoft’s management and CEO, advised by Goldman Sachs and JP Morgan, have begun a financial review of potential strategic options. Juraj Krúpa, founder of AJ Investments, said:
“That’s why we organize this demonstration in May to ensure that we have time to arrive at the conclusion that we will truly increase shareholder value. If their conclusions effectively increase shareholder value, we will cancel the demonstration.
“All Ubisoft shareholders/investors deserve a company that maximizes value and operates with transparency and accountability,” added Krúpa. “Ubisoft continues to slow performance compared to its industry peers, and it’s time for the company to listen to its shareholders. This demonstration will be a strong statement from investors who believe in the company’s potential but demand urgent change.”
The AJ investor said he was ready to “sue the company to mislead investors.”
This is not the first time the investor has asked the company to go private amidst a stock slump following the disappointing release. Star Wars Outlaw.
Back in September AJ Investments has issued a strongly expressed open letter to Ubisoft’s board of directorswhich includes CEO Yves Guillemot and fellow investor Tencent, expressing their dissatisfaction with the company’s performance and current stock price, urging the company to change its leadership and consider selling. I’ve been confused for weeks at Ubisoft. Stock prices plummeted following the launch of Massive Entertainment’s Star Wars Outlawswhat Ubisoft has since confirmed was done below expectations.
Vikki Blake is a reporter, critic, columnist and consultant. She is also a Guardian, Spartan, Silent Hellian, Legend, and constantly high chaos. Find her Blue skiing.
