Ubisoft Shareholder Protests at Paris HQ, Alleges Hidden Acquisition Talks with Microsoft, EA

A minority shareholder in Ubisoft, led by Juraj Krúpa of AJ Investments, is organizing a protest outside the company's Paris headquarters. The protest stems from allegations that Ubisoft has failed to disclose discussions with Microsoft, EA, and other publishers interested in acquiring its franchises. Krúpa accuses Ubisoft's management of mismanagement, demanding a clear recovery plan to address declining shareholder value, poor operational execution, and failure to adapt to market trends.

In a statement seen by IGN, Krúpa criticized Ubisoft for a lack of transparency, particularly regarding an Assassin's Creed Mirage DLC partnership with the Saudi investment firm Savvy Group and alleged discussions about selling IPs to other companies. IGN has reached out to Ubisoft for comment on these allegations.

Recent reports suggest that Ubisoft's founding Guillemot family and shareholder Tencent have been exploring the possibility of taking the company private. This comes after a series of high-profile flops, game cancellations, and a significant drop in the company's share price. Ubisoft had previously stated they would inform the market of any developments if and when appropriate.

Ubisoft has been facing a prolonged downward spiral, marked by numerous delays, layoffs, studio closures, and game cancellations. Amidst these challenges, rumors persist about the board's considerations for the company's future, with some reports indicating Tencent's hesitance to invest further due to the Guillemot family's desire to retain control.

Krúpa also pointed out the multiple delays of Ubisoft's highly anticipated game, Assassin's Creed Shadows, initially set for July 18, 2024, then delayed to November 15, 2024, and finally rescheduled for March 20, 2025. These delays, according to Krúpa, led to significant stock declines, adversely affecting retail investors while benefiting corporate and institutional investors.

AJ Investments is rallying other frustrated shareholders to join the protest in May, urging Ubisoft's management to take decisive action to enhance shareholder value. Krúpa mentioned that Ubisoft's management, advised by Goldman Sachs and JP Morgan, is currently reviewing potential strategic options. If this review results in a plan that genuinely increases shareholder value, AJ Investments will cancel the demonstration.

Krúpa emphasized the need for Ubisoft to operate with transparency and accountability, highlighting the company's underperformance compared to its peers. AJ Investments has threatened legal action against Ubisoft for allegedly misleading investors.

This is not the first time AJ Investments has publicly criticized 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 change in leadership and considering a sale due to the company's plummeting share price.

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