Ubisoft Is "Horribly Managed," Investor Says, Report Claims EA And Microsoft Might Buy Franchises

Ubisoft is "horribly mismanaged" and has failed to inform the public about supposed conversations with Microsoft and EA regarding possible acquisition deals. That's according to the Ubisoft minority shareholder AJ Investments, which said in a memo that it might organize a protest at Ubisoft's office in Paris to help elevate its concerns and get attention.

AJ Investments CEO Juraj Krupa said in a statement seen by IGN that Ubisoft is "horribly mismanaged by current management." The investment group, which previously urged Ubisoft management to make drastic changes, said Ubisoft needs to disclose a "clear roadmap for recovery" amid "declining shareholder value, lackluster operational execution, and failure to adapt effectively to market trends."

Krupa went on to say that the private financial market platform MergerMarket carried a story that claims Ubisoft was talking to Microsoft, EA, and other companies about potentially acquiring unspecified franchises from Ubisoft. Krupa said Ubisoft management failed to disclose these discussions publicly.

A spokesperson for Ubisoft reiterated what it said months ago, which is that Ubisoft is in the process of conducting a strategic review of "transformation strategic and capitalistic options," but that the company does not plan to make public announcements until a possible deal materializes.

In addition to possibly Microsoft and EA, Ubisoft is reported to possibly be in discussions with Tencent about some kind of financing deal. It remains to be seen how this might all materialize, but one possibility that's rumored is Ubisoft selling off individual franchises.

Krupa added that the latest delay for Assassin's Creed Shadows to March 20 caused Ubisoft's stock to decline in value, but mainly retail investors were harmed by this--not institutional investors like Goldman Sachs and Morgan Stanley. Because Ubisoft did not act "appropriately," as AJ Investments sees it, the company is asking frustrated investors to join a protest planned for May.

Krupa said AJ Investments will call of its protest if Ubisoft's strategic review leads to an end result that increases shareholder value. It also hasn't ruled out suing Ubisoft.

"Ubisoft has continued to underperform compared to its industry peers, and it is time for the company to listen to its shareholders. This demonstration will be a powerful statement from investors who believe in the company's potential but demand urgent change," Krupa said.

As mentioned, Ubisoft's next big release is Assassin's Creed Shadows on March 20. It's been a tumultuous past year for Ubisoft, as the company's cost-cutting efforts have included mass layoffs and studio closures, as well as the shutdown of XDefiant.