A Ubisoft minority shareholder, Aj Investment, is demanding significant restructuring, including management changes and staff reductions, citing underperformance and poor strategic direction. The investor's open letter criticizes recent game releases and the company's overall financial outlook.
Aj Investment Calls for Ubisoft Overhaul
Aj Investment, a significant Ubisoft shareholder, has publicly expressed its deep dissatisfaction with the company's performance and strategic direction. The investor points to the delayed release of key titles, lowered revenue projections, and overall poor performance as evidence of management shortcomings. The letter specifically calls for a new CEO to replace Yves Guillemot, emphasizing the need for cost optimization and a more agile company structure.
The investor highlights the low valuation of Ubisoft compared to its competitors, attributing this to mismanagement and the perceived undue influence of the Guillemot family and Tencent. Aj Investment criticizes the company's focus on short-term results rather than long-term strategic planning. Specific criticisms include the cancellation of The Division Heartland, and the underwhelming reception of Skull and Bones and Prince of Persia: The Lost Crown. While acknowledging the success of Rainbow Six Siege, the investor points to the underutilization of other popular franchises like Rayman, Splinter Cell, For Honor, and Watch Dogs. Even the highly anticipated Star Wars Outlaws, intended as a turnaround title, has reportedly underperformed.
Beyond management changes, Aj Investment advocates for substantial staff reductions. The letter draws a comparison to competitors like EA, Take-Two Interactive, and Activision Blizzard, highlighting their higher revenues and profitability despite employing significantly fewer staff. Aj Investment argues that Ubisoft's 17,000+ employees are excessive and proposes selling underperforming studios to improve operational efficiency. While acknowledging previous layoffs, the investor believes further cuts are necessary to remain competitive.
Ubisoft's share price has plummeted significantly in recent months, further fueling investor concerns. The company has yet to respond publicly to Aj Investment's demands.
