As someone who has been a long-time supporter and follower of Ubisoft, watching their recent struggles is akin to witnessing a beloved friend going through tough times. The stock price drops and underperforming games have become too frequent, leaving many of us fans concerned about the future of our favorite game developer.
It appears that Ubisoft is still facing some challenges. Last week, news broke about a decrease in their stock prices due to a less-than-stellar launch of Star Wars Outlaws and the persistent poor performance of XDefiant. Regrettably for Ubisoft, things haven’t seemed to get better since then.
Initially, as we speak, the company’s stock price stands at €13.67. Today alone, it has decreased by 7.13%. Over the past year, this decrease has accumulated to more than 50%.
In this significant decline, AJ Investments – a minority stakeholder in Ubisoft – has publicly voiced its substantial discontent with the current state of affairs and strategic path of the company. The open letter also raises questions about the management’s capability to create value for shareholders in the long run.
As an ardent supporter, I’ve been inspired to voice my thoughts about Ubisoft. I find myself advocating for either a private takeover or a sale to a strategic investor, who, interestingly enough, thinks the company’s share price should ideally be around €40-€45. Moreover, this investment group is pushing for a management reshuffle, suggesting the potential replacement of Yves Guillemot as CEO and a fresh leadership approach.
The primary cause for Ubisoft’s valuation being lower than that of its peers, as stated in the letter, is due to a perceived mismanagement of the company. This situation seems to leave shareholders vulnerable to the influence of Guillemot family members and Tencent, who are thought to be exploiting this position. The management appears to prioritize meeting quarterly investor expectations over developing long-term strategies that would enhance the gaming experience for consumers.
The game titled “Star Wars Outlaws” was released in August, garnering somewhat divided opinions, leading to a range of reviews. Following this, the creative director, Julian Gerighty, voiced his dissatisfaction regarding the received scores post-launch.
Ubisoft’s next major release is Assassin’s Creed Shadows, which is due out this November.
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2024-09-10 00:41