It seems that Ubisoft continue to be in financial difficulty these days, with the share value which has dropped further in the last few hours, also as a consequence of the less than enthusiastic reception of Star Wars Outlaws, so much so as to push some analysts and investors to suggest the company go privatefor greater safety.
After last week’s decline, which brought Ubisoft’s share price to its lowest point in 10 years, today was another difficult day for the French company on the London Stock Exchange, where shares hit a new low of €13.66, leading some analysts and investment funds to propose an emergency plan for the company.
According to the AJ Investment Fund Ubisoft’s standard value should be around €40-45 per share, so at the moment it is a company that is heavily undervalued on the stock market, and this is also due to problems of the current management linked to Guillemot.
A bailout?
“Ubisoft is currently poorly managed and shareholders are held hostage by members of the Guillemot family and Tencent who are taking advantage of it,” AJ analysts said in a statement.
“Management is focused on pleasing investors with quarterly results and not focusing on the long-term strategy of providing an exceptional player experience.”
“Our company has a deep understanding of the video game industry and we have been long-term shareholders of Activision Blizzard and initiated our position in Ubisoft a couple of weeks ago and are still increasing it.”
AJ’s idea is to take the company private, thus taking it off the public market, while maintaining “Tencent as a partner significant and large investor”, as well as possibly launching a “broad program of cost reduction and staff optimization”.
#Ubisoft #Stock #Drops #Star #Wars #Outlaws #Investors #Suggest #Privatization
