Ubisoft’s share price tumbles again as minority investor calls for the company to go private

Ubisoft “is mismanaged,” claims investor AJ Investments

Ubisoft’s share price has tumbled once again after a minority investor called for the company to go private.

Ubisoft’s stocks took a hit last week, falling by more than 10% in two days following the release of Star Wars Outlaws.

At the time, the share price of Ubisoft Entertainment SA fell to €15.34, the lowest it’s been since 2014. The firm’s market cap was then €1.97 billion.

Now shares have plunged even further, closing 7.1% down on Monday, September 9 at €13.67.

WSJ reports that Juraj Krupa of AJ Investments and Partners has written an open letter to the board outlining its “deep dissatisfaction with the current performance and strategic direction of the company.”

Consequently, the Slovakian hedge fund is calling for CEO Yves Guillemot and the board to “take Ubisoft private or allow it to sell to strategic investor.”

Stating that Ubisoft is a “great, undervalued company”, the minority stakeholder – which holds less than 1% – is also calling for a “change of the current management” and a “new CEO who will optimise the cost and studio structure for more agile and competitive company as Ubisoft should be.”

“Ubisoft at current state is mismanaged and shareholders are hostages of Guillemot family members and Tencent who take advantage of them,” the hedge fund asserts.

“Management is focused on pleasing investors with beating quarterly results and not focusing on long-term strategy to provide exceptional experience for the gamers.”

Ubisoft’s share price has fallen more than 50% over the last year, taking it near a 10-year low.