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

A minority shareholder in Ubisoft, AJ Investments, is planning a protest outside the company's Paris headquarters, accusing Ubisoft of failing to disclose alleged discussions with Microsoft, EA, and other publishers interested in acquiring its franchises. Juraj Krúpa, CEO of AJ Investments, has criticized Ubisoft's management for poor performance and lack of transparency, particularly regarding potential partnerships and acquisition talks.

In a statement to IGN, Krúpa claimed that Ubisoft is "horribly mismanaged" and demanded a "clear roadmap for recovery" to address declining shareholder value, operational shortcomings, and failure to adapt to market trends. He accused Ubisoft of withholding information, including a partnership for an Assassin's Creed Mirage DLC with the Saudi investment firm Savvy Group.

Krúpa also referenced a restricted article from MergerMarket that alleged discussions between Microsoft, EA, and others interested in acquiring Ubisoft's IPs, which he claims were not disclosed to the public. IGN has reached out to Ubisoft for a response.

Previously, Bloomberg reported in October that Ubisoft's founding Guillemot family and shareholder Tencent were exploring taking 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 appropriate.

Ubisoft has been facing challenges for several years, marked by flops, layoffs, studio closures, game cancellations, and numerous delays. Rumors suggest that Tencent may be hesitant to proceed due to the Guillemots' desire to retain control, leaving few viable options for Ubisoft's recovery.

Krúpa's statement also 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, according to Krúpa, led to severe stock declines, primarily affecting retail investors while benefiting corporate and institutional investors.

AJ Investments is calling on all frustrated shareholders to join the protest in May, emphasizing the need for Ubisoft to enhance shareholder value and operate with transparency and accountability. Krúpa mentioned that Ubisoft's management, advised by Goldman Sachs and JP Morgan, is reviewing potential strategic options, and the protest aims to pressure them into making decisions that genuinely increase shareholder value.

If Ubisoft's strategic review yields positive results, AJ Investments is willing to cancel the demonstration. However, they are also prepared to sue Ubisoft for misleading investors. This follows a previous open letter from AJ Investments in September, urging Ubisoft to consider going private and change leadership after the disappointing release of Star Wars Outlaws, which led to a significant drop in the company's share price.

For several years, Ubisoft has been grappling with a series of challenges, including high-profile flops, layoffs, studio closures, game cancellations, and numerous delays. The company's performance has been under scrutiny, with shareholders like AJ Investments demanding more transparency and decisive action to reverse the downward trend.

Rumors continue to circulate about potential strategic moves by Ubisoft's board, with some reports suggesting that Tencent may be reluctant to fully engage due to the Guillemot family's insistence on retaining significant control. Without Tencent's support, few other companies have the resources to help Ubisoft recover.

Krúpa's statement also 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, according to Krúpa, led to severe stock declines, primarily affecting retail investors while benefiting corporate and institutional investors.

AJ Investments is calling on all frustrated shareholders to join the protest in May, emphasizing the need for Ubisoft to enhance shareholder value and operate with transparency and accountability. Krúpa mentioned that Ubisoft's management, advised by Goldman Sachs and JP Morgan, is reviewing potential strategic options, and the protest aims to pressure them into making decisions that genuinely increase shareholder value.

If Ubisoft's strategic review yields positive results, AJ Investments is willing to cancel the demonstration. However, they are also prepared to sue Ubisoft for misleading investors. This follows a previous open letter from AJ Investments in September, urging Ubisoft to consider going private and change leadership after the disappointing release of Star Wars Outlaws, which led to a significant drop in the company's share price.