The hedge fund sites "deep dissatisfaction with the current performance and strategic direction of the company."
And the hits just keep on coming for Ubisoft. Following the weak launch of Star Wars Outlaws, the company saw JP Morgan slash sales forecasts for the game by two million units. Stocks hit a ten-year low and things were starting to look bad. Now, Ubisoft seems to be in even worse shape following a letter from a minority investor named AJ Investments and Partners that called for the company to go private.
In a letter penned by the hedge fund's Juraj Krupa, AJ Investments states that it is "[deeply] [dissatisfied] with the current performance and strategic direction of the company." Krupa's letter asserts that Ubisoft seems incapable under its current leadership of producing "exceptional [experiences] for the gamers." It goes on to state that Ubisoft CEO Yves Guillemot is mismanaging the company and that his family members, along with Tencent, are holding shareholders "hostage."
Krupa's letter suggests that Ubisoft should go private and seek out a new CEO in order to properly maximize the potential AJ Investments sees in the company. Following the release of this letter, Ubisoft shares fell to $15.07 on Monday. Ubisoft's last remaining big release of 2024 will be Assassin's Creed Shadows, but with the huge amount of controversy swirling around that game and the company's seeming refusal to properly acknowledge it, prospects are looking bleak for its success thus far. We'll see if AJ Investments' letter has any impact on Ubisoft moving forward, but one way or another it appears change is inevitable for the company.
Source: The Wall Street Journal
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