Disgruntled Ubisoft Investor Calls on Assassin’s Creed Maker to Go Private as Shares Slump
A minority investor in Ubisoft has called on the company to go private amid a shares slump following the release of Star Wars Outlaws. Slovakia-based AJ Investments issued a strongly worded open letter to Ubisoft’s board of directors, including its CEO Yves Guillemot, as well as fellow investor Tencent, expressing dissatisfaction with the company’s performance and current share price.
Investor Demands and Criticisms
AJ Investments, a hedge fund holding less than 1% in Ubisoft, urged the board to take the company private or sell it to a strategic investor. The group wants Guillemot out as CEO and threatened to gather other disgruntled minority shareholders for a “proxy fight” to force a sale if their demands aren’t met. They also called for further layoffs, despite the challenging state of the video game industry for developers.
The open letter criticizes Ubisoft’s management, claiming the company is “mismanaged” and shareholders are “hostages” of the Guillemot family and Tencent. The letter includes a series of criticisms about Ubisoft’s games, including:
- The cancelation of free-to-play shooter The Division Heartland.
- Pirate game Skull and Bones, which the group says “was not a success.”
- Single-player adventure Prince of Persia: The Lost Crown, which they call “okay but not very impressive as nobody talks about the game anymore.”
- Live service multiplayer shooter Rainbow Six Siege, which the group admits “is doing great.”
The letter states that franchises like Rayman, Splinter Cell, For Honor, and Watch Dogs “are sleeping for years.”
Star Wars Outlaws: A Disappointing Release?
The group also pointed out that Star Wars Outlaws, while expected to bring good numbers, “was not 100% ready to release, despite the fact that [sic] whole world was waiting for open world game under the Star Wars franchise.” They cite the game’s 76 Metascore and even iGV’s review, which they consider “quite good rating” in their view.
Ubisoft’s share price plunged last week following the launch of Massive Entertainment’s Star Wars Outlaws, with some analysts predicting sales will be below expectations. iGV’s Star Wars Outlaws review scored the game a 7/10, praising its exploration but criticizing its simple stealth, repetitive combat, and bugs at launch.
Pressure on Assassin’s Creed Shadows
Ubisoft has yet to comment on Star Wars Outlaws’ commercial performance. They have said that the company enjoyed a “solid” start to its financial year (April to June) and looked forward to a “strong upcoming release slate” with Star Wars Outlaws and Assassin’s Creed Shadows. “We are excited about the future and confident in the sustained progress of our turnaround throughout the year,” Guillemot stated at the time.
With Star Wars Outlaws facing criticism, the pressure is now on Assassin’s Creed Shadows, due out in November, to make a big impact on Ubisoft’s bottom line. The game’s success could potentially influence the investor’s actions and their continued pressure on Ubisoft’s management.
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