Shareholder calls for Ubisoft CEO to step down and for company to go private

Ubisoft shares have been taking a nosedive recently after a rough year for Ubisoft that saw games like Star Wars Outlaws and Skull & Bones failing to meet expectations. Now, at least one investor is putting pressure on Ubisoft bosses to take the company private. 

Ubisoft shares are currently at a 10-year low and as we noted, the company has lost over 80 percent of its market value since its peak in 2018. This week, shares have slipped by several more percentage points, and now, one shareholder is imploring Ubisoft to go private after more than two decades as a publicly traded company.

AJ Investments, which owns a minority stake in Ubisoft, has published an open letter to Ubisoft (via Insider Gaming), stating that the company is “mismanaged” and that “shareholders are hostages of the Guillemot family members and Tencent, who takes advantage of them”.

The letter calls for Ubisoft to go private, implement a “comprehensive cost reduction program” and “optimise staffing levels to be more comparable with industry leaders”. There is also a call for Ubisoft CEO, Yves Guillemot, to step down and allow a new CEO to take over. Given Ubisoft's fall from grace over the last decade, that doesn't seem like an unfair request.

While AJ Investments wants these changes, it is unclear if there is agreement amongst other shareholders. AJ Investments also acknowledges that while Ubisoft is in a bad position right now, they believe the company is currently undervalued and ultimately, Ubisoft management is to blame for that.

Ubisoft has not responded to the letter publicly and while AJ Investments has shares in Ubisoft, it holds a less than 1% stake in the company, so it doesn't have much power to force change. However, if other investors also have issues with Ubisoft's current management, then there could be a much bigger push for change on the horizon.

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KitGuru Says: With the amount of big-name IP Ubisoft holds, it should be worth more than it is right now. The problem is, Ubisoft has refused to change with the times and as a result, there is now very little public interest in games like Far Cry, or Assassin's Creed. Whether or not things can turn around remains to be seen but it certainly looks like extensive changes are needed, starting at the very top. 

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