Ubisoft Investor Urges Company to Go Private Amid Share Drop

A minority investor in Ubisoft, AJ Investments, has urged the company to consider going private following a notable slump in share prices after the launch of Star Wars Outlaws. In an open letter to Ubisoft's board and CEO Yves Guillemot, the investment group expressed dissatisfaction with the company's management and highlighted the recent underwhelming performance of Star Wars Outlaws, which garnered mixed reviews. They also criticized Ubisoft's handling of various titles, mentioned the struggles of competing games like Xdefiant, and demanded further layoffs. The investor group indicated they might initiate a "proxy fight" to push for changes if their demands are not met.

The slump in Ubisoft's shares has been predominantly attributed to the lackluster reception and performance of Star Wars Outlaws, as well as concerns over the company's overall management and recent games' successes. Analysts had predicted lower-than-expected sales for Outlaws, which has significantly affected investor confidence.

Star Wars Outlaws is an open-world game set in the Star Wars universe, developed by Massive Entertainment. It allows players to engage in intergalactic heists and exploration. Despite the excitement surrounding its release, concerns about gameplay mechanics and bugs were highlighted in reviews, affecting its financial performance and subsequently impacting Ubisoft significantly. This pressure surrounding Outlaws further builds anticipation for future releases from Ubisoft, particularly the upcoming Assassin’s Creed Shadows, which is positioned as a vital asset for the company's recovery.