Key recommendations
- AJ Investments is pushing for Ubisoft to be sold, claims it has 10% backing.
- Ubisoft's stock has fallen over the past year after several high-profile setbacks.
- Whether Ubisoft can bounce back remains to be seen.
AJ Investments, a hedge fund that owns less than 1% of Ubisoft's stock, is pushing for a sale of Ubisoft to a third party or private equity. In a letter sent to Reuters, AJ Investments claims it has the backing of 10 percent of Ubisoft's shareholders.
“We request that Ubisoft management allow the company to be sold to third parties or private equity firms at a fair price,” the letter reads. This comes just weeks after AJ Investments released an open letter containing several proposals for the company's board: cutting costs, “optimizing” staffing levels, privatizing the company and replacing current chief executive Yves Guillemot.
AJ Investments did not disclose which other Ubisoft investors are backing it. Ubisoft's largest shareholder is the Guillemot family, which owns 15% and operates the company. It is followed by Chinese mega-corporation Tencent, which owns just under 10%.
Ubisoft struggled
Ubisoft's share price has been in freefall, losing 66% of its value over the past year, with no signs of recovery. 20% of that drop comes from Ubisoft's announcement alone that Assassin's Creed Shadows has been delayed until February 14th, 2025.
Assassin's Creed Shadows' delay is partly due to the poor commercial performance of Star Wars Outlaws, which had an average reception from gamers and critics alike. According to Ubisoft, “While Assassin's Creed Shadows is completely complete, learnings from the release of Star Wars Outlaws have led us to provide additional time to polish the title.” Ubisoft has also said it's not pushing any specific agenda in Assassin's Creed Shadows following a (nonsense) controversy over the game's dual protagonists.
Poor sales of Star Wars Outlaws and the delay of Assassin's Creed Shadows are just two of the latest blows to what has been a great few years for Ubisoft. Skull & Bones and Prince of Persia: The Lost Crown are two recent misses from Ubisoft, as neither sold well, despite the latter being highly regarded by those who played it.
Only time will tell if Ubisoft can bounce back from recent setbacks and if the current owners can survive this management dispute.
Ubisoft
Headquartered in Saint-Mandé, France, Ubisoft is a developer and publisher that employs more than 20,000 people worldwide. It is mainly known for the Assassin's Creed, Rayman, Far Cry and Just Dance series, as well as games using the Tom Clancy name. It also produces adaptations of popular board games such as Monopoly and Uno.
