Ubisoft Investors Call for CEO Yves Guillemot's Resignation

In an open letter issued by AJ Investments, its founder, Juraj Krupa, expressed dissatisfaction with Ubisoft in a straightforward manner. Krupa suggested that Ubisoft hire a new CEO for the sake of a brighter future, among other actions to “turn the company around.”

This open letter, titled "Urgent Call for Strategic and Structural Changes at Ubisoft Entertainment," was made public on September 9, when Ubisoft shares slumped to a nearly 10-year low since 2015, following a weak launch and reception of Star Wars Outlaws. Hence, the letter was published to express “deep dissatisfaction with the current performance and strategic direction of the company.”

The nearly decade-low share price is not the only thing that has disgruntled stakeholders. Ubisoft recently announced the delay of two key games, Rainbow Six Siege and The Division, along with a lower revenue prediction for the second quarter of the year. All these actions resulted in a strong concern about “the management’s ability to deliver value to shareholders over the long term.”  

As such, Juraj Krupa brings up a series of proposals other than a new CEO who is capable of leading a “team that is capable of driving the company forward and delivering shareholder value.”

These proposals include taking “difficult decisions,” such as more aggressive actions to reduce costs and optimize staff. Despite Ubisoft having cut off nearly 10% of the workforce in the past few years, Krupa believes this is “simply not enough.” He suggests Ubisoft should also make strategic adjustments to put focus on the “core IPs” that are proven to have contributed to Ubisoft’s revenue, including titles like Rainbow Six Siege, Assassin’s Creed, Far Cry, and Watch Dogs. Meanwhile, he asks the board to "take Ubisoft private or allow it to sell to strategic investors.”

As a minor investor holding less than 1% of Ubisoft's shares, the founder of AJ Investments also calls on other minority shareholders to join them and support their initiative.