Ubisoft's problems are mounting: amid a sharp fall in share price, investors are demanding the resignation of CEO Yves Guillemot

We previously reported that due to the disappointing release of Star Wars Outlaws and a number of other failures, Ubisoft's stock has fallen to 2015 levels.

Unfortunately, not only has the company's situation not improved, but it continues to rapidly deteriorate.

Here's What We Know

Representatives of the AJ Investments investment fund, which owns approximately 1% of Ubisoft shares, published an open letter expressing their distrust of the company's management and calling on CEO and co-founder Yves Guillemot to leave his post since he is unable to cope with the current difficulties. If Guillemot does not consider such a move, shareholders are calling for at least leaving the stock exchange and moving Ubisoft to private company status.

Investors have noted the high rate of decline of the stock, so, since 1 January 2024 it has fallen by 42.11%, and for 5 years by 82%. At the time of writing the value of securities of the French publisher is €13.57, while back in February they were worth €24.47, while according to the experts of AJ Investments the fair value should be at least €40.

Ubisoft has not commented on the situation, but it is clear that measures must be taken urgently, otherwise the company could end up in bankruptcy.

Investors are urged to take a long-term view and not to chase momentary trends and beautiful quarterly reports

Flashback

It is unlikely that such a sad trend is solely due to the unsuccessful release of Star Wars Outlaws. This year Ubisoft released two more failed projects: XDefiant and Skull & Bones, and if the free-to-play shooter still has a hypothetical chance for salvation, then the pirate action is going downhill and is unlikely to come out of the abyss of oblivion. Gamers are not in awe of the action game Avatar: Frontiers of Pandora.

The company also Change of plans: Ubisoft has cancelled development of The Division's conditionally free-to-play shooter Heartland The Division Heartland and postponed the release of two games: Rainbow Six Mobile and The Division Resurance.

Thus, at the moment Ubisoft has only hope for a successful release of Assassin's Creed Shadows. In case of failure of this game too, the French publisher will have a very hard time.

Source: AJ Investments