Ubisoft is not doing so hot, with stock prices plumbing new depths following the seemingly lukewarm reception to Star Wars Outlaws and ongoing XDefiant woes. Overnight, things have taken another dramatic turn, with another steep drop on the London Stock Exchange. A "significant minority shareholder" has put the publicly traded company on blast, penning an open letter to investors and threatening to use French law to force through a private sale.
In a publicly released letter (thanks, Insider Gaming), AJ Investments, a minority shareholder with reportedly less than 1% stake in the company, is making waves. It calls for the replacement of CEO Yves Guillemot and for the company to be sold to a private entity, with Chinese conglomerate "Tencent as a significant partner and shareholder" (Tencent already holds a nearly 10% stake). AJ Investments believes Ubisoft is severely mismanaged and its stock is drastically undervalued, stating that shares should be worth €40-€45 (currently around €13) each.
"Ubisoft in its current state is mismanaged, and shareholders are hostages of Guillemot family members and Tencent who take advantage of them. Management is focused on pleasing investors by beating quarterly results and not concentrating on a long-term strategy to provide an exceptional experience for gamers."
Unfortunately, the open letter calls for Ubisoft to "implement a comprehensive cost reduction program and optimize staffing levels to be more comparable with industry leaders," which would almost certainly mean another round of layoffs. Ubisoft has yet to respond to the letter, but we'll update you as the situation evolves.