Ubisoft investor demands CEO change as share price falls after Star Wars Outlaws launch

Ubisoft is being pressured to go private by a minority investor as the company's share price continues to plummet, calling it an "undervalued company."

Ubisoft investor demands CEO change as share price falls after Star Wars Outlaws launch
Tom West

Tom West

Published

While Star Wars Outlaws' creative director has shared their "disappointment" with the game's lukewarm reception, the developer is committed to improving the game via post-launch updates. Unfortunately, that seems to have done little to help with Ubisoft's plummeting share prices, which has led to one investor pressuring Ubisoft to go private.

Ubisoft pressured to implement strategic changes following Star Wars Outlaws' launch

Star Wars Outlaws

Following Star Wars Outlaws' launch, Ubisoft's share price tumbled by 10% last week to €15.34 — the lowest it's been since 2014 (thanks, GamesIndustry.biz), followed by another 7.1% drop yesterday to €13.67.

It's been a bumpy ride for Ubisoft this year, which has seen the company's live service games like Skull and Bones and XDefiant struggle to hold a player base. Now, AJ Investments and Partners, a Slovakian hedge fund that holds less than 1% of Ubisoft's shares according to the Wall Street Journal, has sent an open letter to Ubisoft calling for a "change of the current management," including a replacement for the company's current CEO Yves Guillemot, suggesting that "Ubisoft at current state is mismanaged and shareholders are hostages of Guillemot family members and Tencent who take advantage of them."

AJ Investments says, "Management is focused on pleasing investors with beating quarterly results and not focusing on long-term strategy to provide exceptional experience for the gamers." Along with going private "with Tencent as a significant shareholder," the hedge fund suggests that Ubisoft implements a "comprehensive cost reduction program and optimize staffing levels to be more comparable with industry leaders,” although AJ Investments says that it's aware of the layoffs Ubisoft has already had in "recent years."

In other Ubisoft news, the company has rolled out a new update for Star Wars Outlaws with stealth improvements and quest fixes.
Written by Tom West
Tom has been playing video games since he was old enough to hold a controller, experimenting with a number of systems until he eventually fell in love with Xbox. With a passion for the platform, he decided to make a career out of it, and now happily spends his days writing about that which he loves. If he’s not hunting for Xbox achievements, you’ll likely find him somewhere in The Elder Scrolls Online or fighting for survival in Battlefield.
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