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 not been transparent about its strategic discussions, particularly regarding potential acquisitions of its franchises by companies like Microsoft and EA. Krúpa criticizes Ubisoft's management for "horrible mismanagement" and demands a clear recovery plan to address declining shareholder value, poor operational execution, and failure to adapt to market trends.

In his statement, Krúpa alleges that Ubisoft has withheld information about significant business decisions, including a partnership for an Assassin's Creed Mirage DLC with the Saudi investment firm Savvy Group. He also references a restricted article by MergerMarket that claimed discussions were underway with Microsoft, EA, and other publishers interested in acquiring Ubisoft's IPs, which were not disclosed to the public.

IGN has reached out to Ubisoft for a response to these allegations.

The backdrop to this protest is Ubisoft's ongoing struggles, marked by a series of high-profile flops, layoffs, studio closures, game cancellations, and numerous delays. In October, Bloomberg reported exploratory talks between Ubisoft's founding Guillemot family and shareholder Tencent to take the company private, though Ubisoft stated it would inform the market if and when necessary.

Rumors persist about the board's considerations, with some suggesting Tencent's reluctance to proceed due to the Guillemots' desire to retain significant control. Without Tencent, few companies are seen as capable of financially rescuing Ubisoft.

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

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

If Ubisoft's forthcoming strategic review yields positive results, AJ Investments is prepared to cancel the demonstration. However, if the situation does not improve, AJ Investments is ready to sue Ubisoft for misleading investors.

This isn't the first time AJ Investments has voiced its concerns; in September, following the disappointing launch of Star Wars Outlaws, the investor sent an open letter to Ubisoft's board, urging a change in leadership and considering a sale amid a significant share price drop.

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