Ubisoft Shares Drop Again Amidst Investor Pressure for Management Overhaul

Ubisoft is facing increasing financial and managerial pressure as its share price continues to plummet. The company’s stock dropped nearly 10% on Monday, before closing 7.13% lower at €13.67, marking its second significant decline in just five days. The shares are now at a near 10-year low, largely driven by the underperformance of Star Wars: Outlaws and a sharp decrease in player interest for its free-to-play shooter, XDefiant.

Investor Push for Privatization and Leadership Change

AJ Investments, a minority shareholder in Ubisoft, recently published an open letter (thanks VGC), urging the company to consider privatizing or letting it be sold to a strategic investor. The letter criticizes Ubisoft’s current management, led by CEO Yves Guillemot, calling the company “mismanaged” and its shareholders “hostages of the Guillemot family and Tencent.”

AJ Investments is also pushing for cost-cutting measures and suggests that Ubisoft focus more on its core intellectual properties, such as the Assassin’s Creed franchise. The letter calls for a “comprehensive cost reduction program” and a reassessment of staffing levels to align more closely with industry standards.

Despite these pressures, it’s important to note that the proposed changes are not geared toward improving Ubisoft’s game development but rather maximizing shareholder profits. This approach could lead to further layoffs and a more aggressive focus on shareholder returns rather than innovation in gaming.

The future of Ubisoft’s management remains uncertain, but the spotlight is now on upcoming releases like Assassin’s Creed Shadows, which will need to perform well to stabilize the company’s position.