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

A minority shareholder in Ubisoft, AJ Investments, led by CEO Juraj Krúpa, is organizing a protest outside the company's Paris headquarters. The protest stems from accusations of mismanagement and a lack of transparency regarding potential acquisition discussions with Microsoft, EA, and other publishers interested in Ubisoft's franchises. Krúpa criticizes Ubisoft's current management for failing to provide a clear recovery plan amidst declining shareholder value, poor operational execution, and inability to adapt to market trends.

In a statement to IGN, Krúpa accused Ubisoft of withholding information, including a partnership for an Assassin's Creed Mirage DLC with the Saudi investment firm Savvy Group. He also referenced a restricted article from MergerMarket alleging discussions between Ubisoft and other companies about acquiring its IPs, which he claims were not disclosed to the public.

Ubisoft has been approached for comment by IGN. Previous reports from Bloomberg indicated that Ubisoft's founding Guillemot family and shareholder Tencent were exploring taking the company private following a series of setbacks, including high-profile game flops and a plummeting share price. However, Ubisoft stated it would inform the market if and when appropriate.

The company has faced a challenging period marked by game delays, cancellations, layoffs, and studio closures. Rumors persist about the board's strategic considerations, with some reports suggesting Tencent's reluctance to proceed due to the Guillemots' desire to retain control. Without Tencent's backing, few entities have the resources to acquire Ubisoft.

Krúpa's statement highlighted the repeated delays of Assassin's Creed Shadows, initially set for July 18, 2024, then November 15, 2024, and finally March 20, 2025. These delays led to revised financial guidance and significant stock declines, adversely affecting retail investors while benefiting corporate and institutional investors.

AJ Investments is calling for all frustrated shareholders to join the May protest, emphasizing the need for Ubisoft's management to enhance shareholder value. Krúpa mentioned that Ubisoft's management, advised by Goldman Sachs and JP Morgan, is conducting a financial review of strategic options, expected to conclude soon. If the review results in increased shareholder value, AJ Investments may cancel the demonstration.

Krúpa stressed the importance of transparency and accountability, urging Ubisoft to listen to its shareholders and address its underperformance compared to industry peers. AJ Investments has also threatened legal action against Ubisoft for misleading investors.

This is not the first time AJ Investments has criticized Ubisoft. In September, following the disappointing release of Star Wars Outlaws, the investor 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 declining share price.

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