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 stems from accusations that Ubisoft has failed to disclose discussions with Microsoft, EA, and other publishers interested in acquiring its franchises. Krúpa has criticized Ubisoft's management for "horrible mismanagement," demanding a "clear roadmap for recovery" to address declining shareholder value, lackluster operational execution, and failure to adapt to market trends. He also alleges that Ubisoft has been opaque about its decision-making, including hiding information about an Assassin's Creed Mirage DLC partnership with the Saudi investment firm Savvy Group.

Krúpa referenced a restricted article from MergerMarket that reported on discussions between Microsoft, EA, and others interested in Ubisoft's IPs, claiming that Ubisoft's management did not inform the public about these talks. IGN has reached out to Ubisoft for comment on these allegations.

In October, Bloomberg reported that Ubisoft's founding Guillemot family and shareholder Tencent were exploring taking the company private amid a series of high-profile flops, game cancellations, and a declining share price. Ubisoft stated it would inform the market if and when appropriate. The company has been facing a slow downward spiral marked by layoffs, studio closures, game cancellations, and numerous delays.

Rumors continue about the strategic proposals under consideration by Ubisoft's board, with some suggesting Tencent's reluctance to fully embrace Ubisoft due to the Guillemot family's desire to retain significant control. Without Tencent, few companies have the resources to acquire Ubisoft.

Krúpa's statement highlighted the multiple delays of Ubisoft's crucial game, Assassin's Creed Shadows, initially postponed from July 18, 2024, to November 15, 2024, and then again to March 20, 2025. These delays and revised guidances led to severe stock declines, adversely affecting retail investors while benefiting corporate and institutional investors such as Credit Agricole, Goldman Sachs clients, and Morgan Stanley.

AJ Investments believes Ubisoft's management failed to communicate appropriately with shareholders and is calling on all frustrated investors to join the protest in May. Krúpa noted that Ubisoft's management, advised by Goldman Sachs and JP Morgan, is reviewing potential strategic options. He hopes the review will yield results that increase shareholder value, and if it does, the protest will be called off.

Krúpa emphasized that all Ubisoft shareholders deserve a company that maximizes value and operates transparently and accountably. He highlighted Ubisoft's underperformance compared to its industry peers and the urgency for change. AJ Investments is also prepared to sue Ubisoft for misleading investors.

This isn't the first time AJ Investments has pushed for Ubisoft to go private, having previously issued a strongly worded open letter to Ubisoft's board and Tencent following the disappointing release of Star Wars Outlaws, which led to a significant drop in Ubisoft's share price.