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

A minority shareholder in Ubisoft, led by Juraj Krúpa, CEO of AJ Investments, is organizing a protest outside the company's Paris headquarters. The protest is in response to allegations 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 declining shareholder value, poor operational execution, and failure to adapt to market trends.

In a statement seen by IGN, Krúpa accused Ubisoft of hiding 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 that alleged discussions between Microsoft, EA, and others about acquiring Ubisoft IPs, which he claims were not disclosed to the public.

IGN has reached out to Ubisoft for comment on these allegations.

Back in October, Bloomberg reported exploratory discussions between Ubisoft's founding Guillemot family and shareholder Tencent to take the company private following a series of high-profile flops, game cancellations, and a declining share price. Ubisoft stated it would inform the market if and when appropriate.

Ubisoft has been facing a prolonged downward spiral, marked by flops, layoffs, studio closures, game cancellations, and numerous delays. Rumors persist about the board's considerations, with some suggesting Tencent's reluctance to proceed due to the Guillemot family's desire to retain significant control. Without Tencent, few companies have the resources to undertake a rescue of Ubisoft.

Krúpa's statement also highlighted the repeated delays of Assassin’s Creed Shadows, initially postponed on July 18, 2024, with a confirmed release date of November 15, 2024, and later delayed again to March 20, 2025. These delays and revised guidances led to significant stock declines, adversely affecting retail investors while benefiting institutional investors like Credit Agricole, Goldman Sachs clients, and Morgan Stanley.

AJ Investments believes Ubisoft's management has not communicated appropriately with shareholders and is calling on all frustrated investors to join the May protest. They are aware of Ubisoft's financial review of strategic options, advised by Goldman Sachs and JP Morgan, and expect results in the coming months. If the review enhances shareholder value, AJ Investments will call off the demonstration.

Krúpa emphasized that all shareholders deserve a company that maximizes value and operates transparently and accountably. He stated that Ubisoft has underperformed compared to its peers and that the demonstration will be a powerful statement demanding urgent change.

AJ Investments has threatened to sue Ubisoft for misleading investors. This isn't the first time the investor has pushed for Ubisoft to go private, following a shares slump after the disappointing release of Star Wars Outlaws. In September, AJ Investments sent an open letter to Ubisoft’s board and Tencent, expressing dissatisfaction with the company's performance and share price, urging a leadership change and considering a sale after the poor performance of Star Wars Outlaws.