Ubisoft Entertainment SA ( UBSFF ) faces pressure from a minority shareholder to go private, following the release of Star Wars Outlaws.

Slovakia-based hedge fund AJ Investments, which holds less than 1% of Ubisoft’s stock, issued an open letter to the company’s board of directors, including CEO Yves Guillemot and major shareholder Tencent Holdings ADR (OTC:TCEHY), criticizing Ubisoft’s recent performance and share value.

See Also: Star Wars Outlaws Sales Slump: Ubisoft Shares Hit Near 10-Year Low

Share Price Decline And Investor Demands

The release of Star Wars Outlaws, developed by Ubisoft’s Massive Entertainment, was expected to boost the company's financial outlook, but early reviews and a lukewarm reception from players have raised concerns.

Following the game’s release, Ubisoft's stock price dropped over 10% within two days of Star Wars Outlaws’ release.

At that point, Ubisoft's share price dropped to 15.34 euros ($16.91). That’s its lowest level since 2014, with a market capitalization of 1.97 billion euros.

Since then, shares have declined even further, closing 7.1% lower on Monday, Sept. 9, at 13.67 euros. Currently, Ubisoft stock is trading at 13.25 euros.

“Ubisoft at current state is mismanaged and shareholders are hostages of Guillemot family members and Tencent ( TCTZF ) who take advantage of them,” the open letter reads, according to GamesIndustry.biz.

“Management is focused on pleasing investors with beating quarterly results and not focusing on long-term strategy to provide exceptional experience for the gamers,” it continues.

AJ Investments also raised the possibility of initiating a "proxy fight" to gather support from other minority shareholders to push for a sale if the company does not respond to their demands.

AJ Investments' letter went beyond Star Wars Outlaws, criticizing the management of several of Ubisoft's other projects. The fund pointed to the free-to-play shooter XDefiant, which is also struggling to gain traction.

Skull and Bones is delayed and The Division Heartland was cancelled, the investor noted. The letter further expressed concerns about long-dormant franchises like Rayman, Splinter Cell, For Honor, and Watch Dogs.

However, AJ Investments did acknowledge the success of Ubisoft's live service game Rainbow Six Siege, saying it "is doing great."

Future Expectations For Ubisoft

Ubisoft has yet to publicly respond to the letter or comment on the performance of Star Wars Outlaws.

Earlier this year, Guillemot stated that the company had a “solid” start to its financial year. He also expressed confidence in its upcoming releases, including Star Wars Outlaws.

Assassin’s Creed Shadows is scheduled for release in November.

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