Ubisoft Faces Shareholder Protest Over Acquisition Talks

A minority shareholder in Ubisoft, 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 undisclosed discussions with Microsoft, EA, and other publishers about potential franchise acquisitions, as reported by MergerMarket. He also points to the lack of public disclosure about an Assassin's Creed Mirage DLC partnership 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 following several game cancellations, flops, and a share price collapse. Ubisoft stated it would inform the market if appropriate. The company has experienced a prolonged period of underperformance, including high-profile flops, layoffs, studio closures, and numerous game delays. Speculation continues about potential proposals, with some suggesting Tencent's reluctance due to the Guillemot family's desire to retain significant control.

Krúpa criticizes the multiple delays of Assassin's Creed, impacting investor confidence and causing stock declines. He claims these delays disproportionately harmed retail investors. AJ Investments calls on frustrated investors to join the May protest, aiming to pressure Ubisoft for a clear roadmap to improve shareholder value. If the ongoing strategic review, advised by Goldman Sachs and JP Morgan, yields positive results, the protest will be called off.

AJ Investments emphasizes the need for transparency and accountability, highlighting Ubisoft's underperformance compared to industry peers. The firm also states its readiness to sue Ubisoft for misleading investors. This isn't the first time AJ Investments has called for change; in September, they issued an open letter to the board, including CEO Yves Guillemot and Tencent, expressing dissatisfaction with the company's performance and share price, urging leadership changes and considering a sale following the disappointing release of Star Wars Outlaws.

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