Ubisoft Being Pressured To Go Private

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Ubisoft Being Pressured To Go Private

Ubisoft is facing pressure from an investor to take the company private as its shares continued to fall on the London Stock Exchange.

Less than a week after shares of Ubisoft fell to a 10-year low due to the reception of Star Wars Outlaws, an investor in the company is making a public push for the company to be taken private. This has led to shares falling even further down to €13.66 as of the close of trading on Monday.

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In a

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, AJ Investments is says that Ubisoft is an undervalued company and should be worth up to €40-€45 per share. The hedge fund says it has concerns about the future of Ubisoft as well as its current management.

“Ubisoft at current state is mismanaged and shareholders are hostages of Guillemot family members and Tencent who take advantage of them,” the letter said. “Management is focused on pleasing investors with beating quarterly results and not focusing on long-term strategy to provide exceptional experience for the gamers. Our company has extensive knowledge about the gaming industry and we were longterm shareholder in Activision Blizzard and we started our Ubisoft position couple weeks ago and still adding to it.”

The company suggests that the company goes private “with Tencent as a significant partner and shareholder”. In addition to that, it wants Ubisoft to “implement a comprehensive cost reduction program and optimize staffing levels to be more comparable with industry leaders.”

“This will involve difficult decisions but is necessary to ensure long-term viability and competitiveness,” they say while also mentioned that they are aware of the layoffs Ubisoft has made in “recent years”.

Lastly, the fund suggests making management changes, including the hiring of a new CEO to replace Yves Guillemot.

Ubisoft has yet to respond to the letter or requests for comment. For what it’s worth, AJ Investments holds less than a 1% share in Ubisoft,

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Do you think there’s anything to this push to take Ubisoft private from a ********* investor? For more Insider Gaming, check out what could finally be revealed on Tuesday morning.

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