A minority shareholder in Ubisoft, AJ Investments, led by CEO Juraj Krúpa, is organizing a protest outside the company's Paris headquarters. Krúpa accuses Ubisoft of mismanagement and failing to disclose discussions with Microsoft, EA, and other publishers interested in acquiring its franchises. He claims that Ubisoft's current management has led to declining shareholder value, poor operational execution, and a failure to adapt to market trends.
In a statement to IGN, Krúpa criticized Ubisoft for not being transparent about its decision-making, including an alleged partnership for an Assassin's Creed Mirage DLC with the Saudi investment firm Savvy Group. He also referenced a restricted article from MergerMarket that mentioned discussions about acquiring 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, Bloomberg reported that Ubisoft's founding Guillemot family and shareholder Tencent were exploring options to take the company private following a series of high-profile flops, game cancellations, and a significant drop in share price. Ubisoft stated that it would inform the market if and when appropriate.
Ubisoft has been facing challenges for several years, marked by high-profile flops, layoffs, studio closures, and numerous delays. Rumors suggest that Tencent might be hesitant to invest further due to the Guillemot family's desire to retain control, leaving few viable options for the company's recovery.
Krúpa's statement also highlighted the repeated delays of Ubisoft's much-anticipated game, Assassin’s Creed Shadows. Originally set for release on July 18, 2024, it was first delayed to November 15, 2024, and then again to March 20, 2025. These delays led to significant stock declines, affecting retail investors more severely than institutional ones.
AJ Investments is calling on all frustrated investors to join the protest in May, emphasizing the need for Ubisoft to address its prolonged stagnation and lack of decisive action from management. Krúpa mentioned that Ubisoft's management, advised by Goldman Sachs and JP Morgan, is currently reviewing strategic options, with results expected soon. If these results enhance shareholder value, AJ Investments may cancel the demonstration.
Krúpa stressed the importance of transparency and accountability, urging Ubisoft to maximize shareholder value and listen to its investors. AJ Investments is prepared to sue Ubisoft for misleading investors if necessary.
This isn't the first time AJ Investments has pushed for change at Ubisoft. In September, following the disappointing release of Star Wars Outlaws, AJ Investments sent an open letter to Ubisoft's board and Tencent, urging a leadership change and considering a sale due to the company's poor performance and plummeting share price.
For a comprehensive understanding of Ubisoft's situation and to stay updated on any developments, keep an eye on official announcements and industry news.
