Ubisoft shares plunge again after investor urges company to go private
Ubisoft’s share price plunged again on Monday after a minority investor called on management to take the company private or let it be sold to a strategic investor.
The Assassin’s Creed publisher’s share price fell almost 10% during trading today, before closing down 7.13% at €13.67. It has fallen by more than 50% over the last 12 months and now sits close to a ten-year low.
The company’s share price had already declined significantly earlier this month, reportedly driven by a combination of a poorer than expected launch for Star Wars Outlaws and a sharp decline in interest in free-to-play shooter XDefiant.
On Monday, hedge fund AJ Investments published an open letter calling for strategic and structural changes at Ubisoft.
It urged the board to consider taking the company private, “implement a comprehensive cost reduction program and optimize staffing levels to be more comparable with industry leaders,” increase its focus on core IPs, and consider replacing current CEO Yves Guillemot.
Slovakia-based AJ Investments holds less than 1% in Ubisoft, according to the Wall Street Journal.
The creative director of Star Wars Outlaws has said he’s a “little disappointed” with review scores for the game, and that developer Ubisoft Massive is committed to improving the title with post-release updates.
Ubisoft today began rewarding XDefiant players with free virtual currency for logging into the game, seemingly in a bid to boost engagement as the title’s first season of live content draws to a close.
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