Ubisoft Shareholder Plots Protest Outside Paris HQ, Accuses Company of Failing to Reveal 'Discussions' With Microsoft, EA, and Others Allegedly Interested in Acquiring IPs

A minority shareholder in Ubisoft, AJ Investments, is planning a protest outside the company's Paris headquarters. The protest stems from accusations that Ubisoft failed to disclose discussions with potential acquirers, including Microsoft and EA, regarding the sale of its franchises.

Juraj Krúpa, CEO of AJ Investments, claims Ubisoft is "horribly mismanaged" and demands a clear recovery plan addressing declining shareholder value and poor market adaptation. Krúpa alleges a lack of transparency surrounding key decisions, citing the undisclosed partnership for Assassin's Creed Mirage DLC with the Saudi investment firm Savvy Group as an example. He also points to a MergerMarket article (access restricted) reporting discussions between Ubisoft and potential buyers like Microsoft and EA for its intellectual properties, claiming management kept this information from the public.

Ubisoft has been contacted for comment by IGN. Previously, Bloomberg reported discussions between Ubisoft's Guillemot family and Tencent about taking the company private following a string of unsuccessful game launches, cancellations, and a plummeting share price. At the time, Ubisoft stated it would inform the market when appropriate.

Ubisoft has faced a prolonged period of challenges, including high-profile game failures, layoffs, studio closures, and numerous game delays. Speculation continues regarding the board's strategic options, with some suggesting Tencent's reluctance to fully commit due to the Guillemot family's desire to retain significant control. Without Tencent's support, finding a buyer with the financial resources to acquire Ubisoft becomes increasingly difficult.

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Krúpa criticizes the multiple delays of Assassin's Creed, noting the initial July 18, 2024, announcement, subsequent delays, and revised financial guidance. He argues these actions disproportionately harmed retail investors while benefiting institutional investors who purchased shares at lower prices. AJ Investments believes Ubisoft's communication with shareholders has been inadequate.

AJ Investments urges frustrated investors to join their May protest, stating they await the results of Ubisoft's strategic review (led by Goldman Sachs and JP Morgan). The protest will be called off if the review significantly improves shareholder value. AJ Investments also states its willingness to sue Ubisoft for allegedly misleading investors.

This isn't AJ Investment's first action against Ubisoft. Following the disappointing performance of Star Wars Outlaws, they previously issued an open letter to the board, expressing dissatisfaction with the company's performance and urging leadership changes or a sale.