Are Ubisoft Deliberately Releasing Bad Games? Investor Accuses Founding Family of Driving Share Price Down to “buy more shares at lower valuation and take full control”

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Are Ubisoft Deliberately Releasing Bad Games? Investor Accuses Founding Family of Driving Share Price Down to "buy more shares at lower valuation and take full control"

As a long-time gamer and investor, I’ve been following Ubisoft’s journey with bated breath. The recent tumultuous events have left me scratching my head and wondering what’s next for this venerable gaming giant.

In September 2024, Ubisoft’s stock experienced a significant decrease, causing concern among investors. This worry stems from their doubts about the current leadership and strategy of the company. Now, one investor alleges that the Guillemot family, who founded Ubisoft, intentionally lowered the share price to repurchase stocks and regain control of the company once more.

Self-Sabotage at Ubisoft?

As a passionate gamer and shareholder with less than 1% stake in Ubisoft, I penned an open letter expressing my concerns after the company’s stock hit its lowest point in over a decade. It’s no secret that Ubisoft has been facing challenges for quite some time now, but 2024 has proven to be particularly tough. The underperformance of games like XDefiant and Star Wars: Outlaws, as well as the postponement of Rainbow Six Mobile and Tom Clancy’s The Division Resurgence until next year, have certainly not made things easier.

In the open letter, AJ Investment takes an extra step and alleges that the Guillemot family intentionally lowered the share price to acquire additional stocks.

We believe that the Guillemot family and Tencent are discounting potential value of Ubisoft in order to buy more shares at lower valuation and eventually take full control of the company at heavily discounted valuation.

While there’s no definitive proof for this, AJ Investment has suggested that the Guillemot family acquired more than four million shares in February 2013 when Ubisoft stock was at an all-time low. It’s possible they might be looking to buy back additional shares to reclaim control, but the notion that they would artificially lower Ubisoft’s stock value to do so seems somewhat unrealistic.

As a gamer, it’s mind-blowing to see theories like these even being considered. It’s high time Ubisoft reconsiders their approach and makes some significant changes.

Do you think there’s any truth to this accusation? And if not, what is the answer for Ubisoft?

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2024-09-16 15:39