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

A minority shareholder in Ubisoft, represented by AJ Investments CEO Juraj Krúpa, is organizing a protest outside the company's Paris headquarters. The protest stems from allegations that Ubisoft has failed to disclose discussions with Microsoft, EA, and other publishers reportedly interested in acquiring its franchises. Krúpa accuses Ubisoft of being "horribly mismanaged" and demands a clear recovery plan from the senior team to address declining shareholder value, poor operational execution, and failure to adapt to market trends.

Krúpa's statement, seen by IGN, also criticizes Ubisoft for a lack of transparency in its decision-making, specifically mentioning undisclosed partnerships, such as a DLC for Assassin's Creed Mirage with the Saudi investment firm Savvy Group. Additionally, he references a restricted article from MergerMarket that alleged discussions about acquiring Ubisoft's IPs, which were not disclosed to the public.

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

In October, Bloomberg reported that Ubisoft's founding Guillemot family and shareholder Tencent were exploring the possibility of taking the company private, following a series of high-profile flops, game cancellations, and a significant drop in share price. Ubisoft responded by stating they would inform the market if and when appropriate.

Ubisoft has been facing challenges for several years, marked by high-profile flops, layoffs, studio closures, game cancellations, and numerous delays. Rumors suggest that the board is considering various proposals, with some reports indicating Tencent's reluctance to proceed due to the Guillemot family's desire to retain significant control. Without Tencent's backing, few companies have the resources to potentially rescue Ubisoft.

Krúpa's statement also highlighted the repeated delays of Assassin's Creed Shadows, initially postponed from July 18, 2024, to November 15, 2024, and then again to March 20, 2025. These delays, according to Krúpa, led to severe stock declines, primarily affecting retail investors while benefiting corporate and institutional investors who bought at distressed prices.

AJ Investments is calling on all frustrated investors to join the protest in May, emphasizing the need for Ubisoft's management to communicate more effectively with shareholders. Krúpa mentioned that Ubisoft's management, advised by Goldman Sachs and JP Morgan, is conducting a financial review of potential strategic options, with results expected in the coming months. The demonstration aims to pressure Ubisoft into making decisions that enhance shareholder value, with the possibility of calling off the protest if satisfactory results are achieved.

Krúpa stressed the importance of transparency and accountability, urging Ubisoft to listen to its shareholders and address its underperformance compared to industry peers. AJ Investments has also threatened legal action against Ubisoft for allegedly misleading investors.

This is not the first time AJ Investments has voiced its concerns. In September, following the disappointing release of Star Wars Outlaws, AJ Investments sent an open letter to Ubisoft's board and Tencent, criticizing the company's performance and urging a change in leadership and consideration of a sale.

For several years now, Ubisoft has seemed to be in a strange, slow downward spiral, with a number of high-profile flops, layoffs, studio closures, game cancellations, and delay after delay after delay.

Meanwhile, rumors continue to spin about what exact proposals the board is considering, with some media outlets floating the idea that Tencent is increasingly reluctant to embrace Ubisoft due to the Guillemot family's insistence on retaining a significant amount of control. Sans Tencent, there are few other companies big enough and rich enough to spend the cash needed to save the albatross Ubisoft has grown into.

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