Ubisoft's Stock Price Plummets Again Amid Calls for Privatization

The value of Ubisoft's shares has taken another significant hit after a minority investor urged the company to consider going private. This recent downturn follows a notable decline in the company's stock price last week, which dropped over 10% in just two days after the release of Star Wars Outlaws. At that time, the share price of Ubisoft Entertainment SA plummeted to €15.34, its lowest point since 2014, with the company's market capitalization standing at €1.97 billion. The shares have since fallen further, closing 7.1% lower on Monday, September 9, at €13.67. According to the Wall Street Journal, Juraj Krupa of AJ Investments and Partners has expressed 'deep dissatisfaction' with the company's current performance and strategic direction in an open letter to the board. As a result, the Slovakian hedge fund, which holds less than 1% of the company, is advocating for Ubisoft to either go private or be sold to a strategic investor. The minority stakeholder believes Ubisoft is an 'undervalued company' and is calling for a change in the current management, including the replacement of CEO Yves Guillemot with a new leader who can optimize costs and studio structure to create a more agile and competitive company. The hedge fund alleges that Ubisoft is currently 'mismanaged' and that shareholders are being taken advantage of by the Guillemot family and Tencent. It also claims that the management is prioritizing short-term quarterly results over long-term strategies that would provide an exceptional experience for gamers. Over the past year, Ubisoft's share price has declined by more than 50%, bringing it close to a 10-year low.