Ubisoft's share prices took another nosedive on the London Stock Exchange. The situation comes as one of the company's investors is calling for it to go private.
This comes less than a week after the company's share prices fell to a 10-year low due to the gaming community's reception of Star Wars Outlaws. One of its investors made a public push for Ubisoft to be taken private.
Ubisoft's Share Prices
This resulted in its shares falling even further down to roughly $15.08 as of the close of trading on Monday, Sept. 9, 2024. AJ Investments shared a letter where it said that Ubisoft is an undervalued company and should be worth up to about $44.15 to $49.67 per share.
The hedge fund argued that it had concerns regarding the company's future as well as its current management.
The letter noted that Ubisoft is currently being mismanaged and that shareholders have become "hostages" of Guillemot family members and Tencent, according to Insider Gaming.
The letter argued that current management was too focused on pleasing investors by beating quarterly results. They were allegedly not focusing enough on a long-term strategy to provide exceptional experiences for gamers.
What the company is suggesting is for Ubisoft to go private "with Tencent as a significant partner and shareholder."
On top of this, it wants the company to implement a "comprehensive cost reduction program and optimize staffing levels to be more comparable with industry leaders."
AJ Investments also called for a change in CEO to let a new leader optimize the cost and studio structure for a more agile and competitive company as it should be.
The situation comes as Ubisoft's share price dropped more than half over the last year, marking a 10-year low, said GamesIndustry.
Urge To Go Private
The share price drop comes despite Ubisoft's recent release of amazing games in the last few years. These include Prince of Persia: The Lost Crown, which was not in the same negative situation as the company's other titles, including XDefiant and Star Wars Outlaws.
On top of Ubisoft's share price woes, one of its games, XDefiant, is now facing a risk of losing post-launch support. This is because player numbers have continued to slide despite previously contributing financially to the company.
If XDefiant's player count doesn't go up by Season 3, the game could lose the needed post-launch support that makes it much more playable for gamers compared to many other titles in the genre, according to WCCFTech.
