Ubisoft's stock value continues to decline as a minority shareholder urges the company to consider going private

A recent comment from a minority stakeholder urging Ubisoft to become privately held has caused the company's shares to drop again.

Ubisoft's stock value decreased significantly following the launch of Star Wars Outlaws, experiencing a more than 10% decline in just two days. At that point, the stock reached €15.34, marking its lowest level since 2014, and the company's market valuation stood at €1.97 billion.

Shares have continued to fall, closing 7.1% lower on Monday, September 9, at €13.67.

The Wall Street Journal indicates that Juraj Krupa from AJ Investments and Partners has expressed his "deep dissatisfaction with the current performance and strategic direction of the company" in an open letter addressed to the board.

The Slovakian hedge fund is advocating for CEO Yves Guillemot and the board to either make Ubisoft a private company or let it be acquired by a strategic investor. Despite owning less than 1% of the company, the shareholder describes Ubisoft as a "great, undervalued company" and demands a management overhaul alongside the appointment of a "new CEO who will optimize the cost and studio structure for more agile and competitive company as Ubisoft should be."

The hedge fund criticizes the current management for prioritizing short-term financial goals over a long-term strategy aimed at delivering outstanding experiences for gamers. It argues that current shareholders are at a disadvantage due to the influence of the Guillemot family and Tencent.

Over the past year, Ubisoft's stock price has been reduced by over 50%, nearing a decade-low value.