Investors Push Ubisoft to Renegotiate Tencent Deal and Take Legal Action
A group of Ubisoft shareholders, led by AJ Investments, is calling for the company to renegotiate its deal with Tencent and take legal action. They have sent an open letter demanding that Ubisoft hold a special shareholder meeting to discuss the deal.
The Tencent deal, announced last week, involves moving three of Ubisoft’s most valuable franchises into a new subsidiary. However, many investors believe the deal is unclear and unfair to Ubisoft shareholders.
Since the deal was announced, Ubisoft’s stock price has dropped by 24%, showing that investors are unhappy. AJ Investments claims that the deal is designed to bypass public offer rules and increase control for the Guillemot family, even though they own less than 10% of Ubisoft.
What Investors Want
AJ Investments and other shareholders are demanding that Ubisoft hold an Extraordinary General Meeting (EGM), which is a special meeting held outside of the usual annual meeting. They want shareholders to be able to vote on two key issues:
- Resolution 1: Renegotiate the Tencent deal and change it to a direct asset sale worth at least €4 billion. Investors want to ensure that this deal actually benefits shareholders.
- Resolution 2: If the sale happens, Ubisoft should distribute €3 billion to shareholders in an extraordinary dividend, which would equal €23 per share in cash.
AJ Investments argues that shareholders do not clearly understand how this deal will benefit them. They believe it is deeply flawed and needs to be changed.
With pressure mounting, Ubisoft may have to address these concerns in the coming weeks. Investors are now waiting to see if the company will respond and agree to hold the special meeting.
You can check out the full statement below:
PRESS RELEASE
AJ Investments and Shareholder Coalition wants clarity on the transaction with Tencent, vote on EGM
Bratislava / Paris – April 2, 2025 – In direct response to Ubisoft’s decision to transfer the IP and related rights of three major gaming franchises (Assassin Creed, Far Cry and Rainbow Siege) into a newly created subsidiary—before raising €1.16 billion from Tencent in exchange for a 25% ownership stake (implying a pre-money valuation of €4 billion)—AJ Investments, alongside a growing coalition of shareholders, is initiating legal proceedings in France.
We are demanding that a French court compel Ubisoft to convene an Extraordinary General Meeting (EGM), giving all shareholders the right to vote on two critical resolutions:
- Renegotiate the Tencent Deal – This transaction must be restructured into a direct asset sale to Tencent for no less than €4 billion, the valuation already accepted by both Tencent and Ubisoft’s board. At the moment, shareholders have no clarity how the deal that was announced last week will eventually benefit shareholders of Ubisoft.
- Distribute an Extraordinary Dividend – Following the sale, Ubisoft shall return €23 per share in cash to shareholders (totaling €3 billion), while preserving €1 billion to cover remaining corporate net debt.
Additionally, we will seek a ruling that:
- Tencent be excluded from voting, due to its direct interest in the outcome of the
transaction.- Guillemot Brothers Holding’s voting rights be limited to their non-Tencent-linked shares.
The market’s reaction to this deal is clear that shareholders are not sure whether they will get a significant benefit from this transaction. Ubisoft’s share price fell by more than 20% on unusually high volume. This signals a clear verdict from investors — the proposed deal is deeply flawed, structured to bypass mandatory public offer rules, and designed to entrench control by the Guillemot family, who now hold less than 10% of the company’s economic interest.
We believe this is a critical moment for shareholders. Without immediate intervention, the company may pursue further asset sales or dilution without delivering value to shareholders. In contrast, a simple vote at an EGM could deliver €23 per share in cash ( €3 billion valuation, source: Euronext outstanding shares for calculation)—more than double the current share price—and restore shareholder trust in Ubisoft’s future.
We suggest that management will explain the benefits of the deal to the shareholders in detail (not 2 A4 pages from where many details are not clear) as the owners of the business and we will have a vote on it. Sell the core IPs to the Tencent as a whole or sell them the 25% stake in a subsidiary that was already announced. Shareholders will choose what they prefer.
We call on all minority shareholders to join us now in this legal effort to protect value and demand accountability. The time to act is today—before the damage becomes irreversible.
