Ubisoft is back in the news again and it’s still not looking good for the game industry giant. A minority shareholder and ever growing group of other shareholders have demanded that Ubisoft hold an Exraordinary General Meeting (EGM). This type of meeting is only held for issues that cannot wait for the next General meeting, and these issues cannot wait! So, let’s take a look into what trouble Ubisoft is in again.

Investors Not Happy

A minor shareholder, Aj Investments, has called for a vote to be made on the recent deal between Ubisoft and the Chinese tech Giant Tencent in an open letter sent to Ubisoft. They and other shareholders are worried about what this deal could mean for them if it were to go through at the end of the year. This comes after the announcement that Ubisoft and Tencent would create a subsidiary that would bring the big AAA games under one umbrella, an announcement that caused a 24% drop in Ubisoft’s stocks. So yeah, investors are worried they’re about to get shortchanged in the deal.

What’s Being Voted On

Here are the issues they are expected to debate and vote on:

1. Renegotiate the deal with Tencent and restructure it as a direct sale of no less than €4 billion ($4.4 billion).
2. Following the sale, there is to be a distribution of €23 ($25) per share in cash  to shareholders totaling €3 billion ($3.3 billion)

What Might Be Happening

AJ Investments and other shareholders fear that this deal isn’t all it seems to be. All of it signals that the deal is flawed and meant to bypass mandatory public offer rules. The deal also looks like it would consolidate the power of the Guillemot family, who hold less than 10% of the company’s economic interest. They also don’t want Tencent’s participation in the vote!

Here is the Ubisoft Press Release:

PRESS RELEASE

AJ Investments and Shareholder Coalition want clarity on the transaction with Tencent and, 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.

Going Forward

This might not be good for Ubisoft going forward. With the public already questioning how the new subsidiary would work out, we now have shareholders feeling it to be too sketchy with how badly this deal is flawed. Hopefully, we will be able to find out in the coming days about the future of Ubisoft.