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

May 25,25(1 years ago)
Ubisoft Shareholder Protests at Paris HQ, Alleges Secret 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 that Ubisoft has failed to disclose alleged discussions with Microsoft, EA, and other publishers interested in acquiring its franchises. Krúpa criticizes Ubisoft's management for poor performance, declining shareholder value, and a lack of transparency, particularly regarding a reported Assassin's Creed Mirage DLC partnership with the Saudi investment firm Savvy Group.

Krúpa also referenced a restricted article from MergerMarket alleging discussions about acquiring Ubisoft IPs, which he claims were not disclosed to the public. Ubisoft has been approached for comment on these allegations.

In October, 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 it would inform the market if and when necessary.

Ubisoft has faced ongoing challenges, including numerous delays, layoffs, studio closures, and game cancellations, contributing to a prolonged downward spiral. There are ongoing rumors about the board's considerations, with some suggesting Tencent's reluctance to invest further due to the Guillemot family's desire to maintain control. Without Tencent, few companies have the resources to potentially rescue Ubisoft.

Krúpa highlighted the multiple delays of Ubisoft's anticipated game, Assassin’s Creed Shadows, which was postponed several times, affecting the company's financial guidance and causing significant stock declines. These delays, according to Krúpa, primarily harmed retail investors while benefiting corporate and institutional investors who could buy at lower prices.

AJ Investments is rallying all frustrated shareholders to join the protest in May, demanding a clear recovery plan from Ubisoft's management. They are aware of Ubisoft's ongoing strategic review, advised by Goldman Sachs and JP Morgan, and expect results soon. If the review leads to actions that enhance shareholder value, AJ Investments will cancel the protest.

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

This is not the first time AJ Investments has voiced concerns. In September, they sent an open letter to Ubisoft's board and Tencent, expressing dissatisfaction with the company's performance and share price, particularly following the disappointing release of Star Wars Outlaws, which led to a significant drop in Ubisoft's share price.

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