Ubisoft accused of hiding the fact that Microsoft, EA and others are interested in buying its brands

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It is possible that Ubisoft could encounter demonstrations once more, but this time it might be their investors leading the charge. Some of these investors are upset, claiming they have been misled by Ubisoft, the French publishing company.

Over the last year, if you’ve kept up with Ubisoft’s turbulent events, you might recall Juraj Krupa, the head of AJ Investments hedge fund. This organization owns a minor stake (under 1%) in Ubisoft’s shares, but Krupa, a Slovakian council member, has been one of the most vocal critics of Ubisoft in recent times.

Last September, it was him who advocated for the replacement of the existing Ubisoft board, including CEO Yves Guillemot, alongside other proposals. At the same time, it was suggested that his plan to sell Ubisoft would secure backing from around 10% of its investors.

Now Krupa is trying to organize a shareholders’ protest at the publisher’s headquarters in Paris.

Does Ubisoft want to sell its brands?

As reported by IGN, Krupa asserts in his statement that Ubisoft is “poorly run by its current board,” and in his capacity as an investor, he advocates for a “definitive strategy” outlining the company’s “rejuvenation.” This is due to Ubisoft’s dwindling shareholder worth, subpar operational results, and inability to effectively respond to market trends.

It’s clear that everyone understands what Krupa signifies. The last few years for Ubisoft haven’t been overly prosperous; even their Star Wars release failed to meet expectations. Additionally, the triple delay of Assassin’s Creed: Shadows has significantly impacted the value of Ubisoft’s stocks.

Meanwhile, Krupa, the founder of AJ Investments, brings up another concern. She claims that Ubisoft may have concealed information from investors, such as partnerships with the Arab Savvy Group and supposed negotiations with Microsoft, Electronic Arts, and other companies about selling Ubisoft’s French publishing brands.

The most recent details are reportedly sourced from a private article written by the MergerMarket group, which hasn’t been shared with investors, leaving Krupa quite disappointed.

It’s important to mention that last year, there were speculations suggesting Tencent could be among the possible bidders for Ubisoft. However, it seems the negotiations may have primarily focused on maintaining control within the company, with the Guillemot family potentially holding onto a substantial stake.

Shareholders’ frustration

I reached out to Ubisoft, and they provided a statement through us. Ubisoft hasn’t responded to MergerMarket reports, but instead, they’ve only repeated their previous statements about exploring different avenues to maximize the value of their assets and brands for all concerned parties.

In our Q3 sales discussion, we’ve been considering different transformative strategic and profit-driven possibilities for Ubisoft. To ensure a fair and competitive process, our Board has formed an independent committee, separate from regular operations, to manage this review. The goal is to maximize the worth of Ubisoft’s assets and franchises for all concerned parties. If and when a transaction occurs, we will disclose this information to the market in compliance with relevant regulations.

Krupa made it clear that he acknowledges the French publisher’s actions and expects outcomes from them within the next few months. However, “the Slovak is urging disgruntled investors to unite for a protest at Ubisoft’s Paris headquarters in May.

This period provides the company an opportunity to boost its worth for shareholders, showcasing transparency in operations by disclosing all relevant information. Failing to do so could lead not just to protests, but potentially to legal action as well.

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2025-03-14 00:02