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 that Ubisoft has failed to disclose discussions with Microsoft, EA, and other publishers interested in acquiring its franchises. Krúpa claims that Ubisoft is "horribly mismanaged by current management" and demands a "clear roadmap for recovery" to address issues like declining shareholder value, poor operational execution, and failure to adapt to market trends.

Krúpa alleges that Ubisoft has not been transparent in its decision-making, particularly regarding a partnership for an Assassin's Creed Mirage DLC with the Saudi investment firm Savvy Group. Additionally, he references a restricted article from MergerMarket that reported discussions about acquiring IPs from Ubisoft, which he claims were not disclosed to the public.

Ubisoft has been facing challenges, including high-profile flops, layoffs, studio closures, game cancellations, and numerous delays. Recent reports suggested that the Guillemot family and shareholder Tencent were considering taking the company private, but those talks were exploratory. The company's struggles have fueled speculation about potential strategic moves, with some reports indicating Tencent's reluctance to invest further due to the Guillemot family's desire to retain significant control.

Krúpa's statement also criticized Ubisoft's handling of Assassin's Creed Shadows, which faced multiple delays and revised financial guidance, leading to significant stock declines that primarily affected retail investors. He believes that these moves benefited larger corporate and institutional investors.

In response to these issues, AJ Investments is calling for all frustrated investors to join the May protest, aiming to pressure Ubisoft's management to take decisive action that enhances shareholder value. Krúpa mentioned that Ubisoft, advised by Goldman Sachs and JP Morgan, is undergoing a financial review of potential strategic options, with expected results in the coming months. If the review leads to positive changes, AJ Investments might cancel the demonstration.

AJ Investments has expressed readiness to sue Ubisoft for misleading investors and has previously urged the company to consider going private amid declining share prices, particularly following the disappointing release of Star Wars Outlaws. In a strongly worded open letter last September, AJ Investments criticized Ubisoft's performance and leadership, calling for a change in management and a potential sale.

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