A minority shareholder of Ubisoft expressed deep dissatisfaction with the company's current results in an open letter addressed to the Board of Directors and other shareholders.
Dissatisfaction with Release Delays
Juraj Kurpa, a minority shareholder, wrote the letter on September 9 through AJ Investments and its partners. Kurpa noted that Ubisoft's recent quarterly results have postponed the release of several games, including The Division and Rainbow Six Siege, to 2025. The shareholder highlighted that these postponements lowered the company's revenue outlook for its second quarter, making him question Ubisoft's ability to deliver long-term value to investors.
Issue of Undervaluation
Kurpa mentioned that Ubisoft's share value has plunged approximately 40% over the past year, significantly underperforming compared to competitors. In his letter, the shareholder expressed concern that Ubisoft is undervalued due to mismanagement by the Guillemot family and Tencent Holdings. He also cited various indicators like Book Value per share, EV/Sales, and EV/EBITDA, comparing them with companies like Take-Two Interactive and Electronic Arts.
Proposal for Going Private
AJ Investments and its partners suggested taking the company private to increase its value for investors. Kurpa noted that Ubisoft should focus on long-term gamer satisfaction rather than just pleasing investors. He also mentioned the importance of management change and proposed hiring a new CEO to replace Yves Guillemot. The minority shareholders plan to start a proxy fight and sale process using French minority shareholder laws.
Ubisoft's minority shareholders express concern over the company's current state and propose significant changes to improve its future prospects.
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