Ubisoft shares fell 8% on Monday morning after the top-down of three top executives on company-wide sexual misconduct allegations this weekend.
In a weekend press release – just before the first virtual conference of the French video game giant – Ubisoft Creative Director Serge Hascoët formally resigned following an internal investigation. He later confirmed that he would leave the company entirely.
Hascoët has been recognized as the leading “creative force” behind much of the Ubisoft catalog for the past decade, including Assassin’s Creed and The division. Hascoët started at the company in 2000.
This is a * huge * deal for Ubisoft. Serge Hascoet was the man in charge of ALL his games. With one word, you could give the green light or cancel a project. Many Ubisoft employees believed he was too powerful and close to the CEO to be kicked out, no matter how many allegations came up
– Jason Schreier (@jasonschreier) July 11, 2020
“Ubisoft has breached its obligation to ensure a safe and inclusive work environment for its employees,” wrote CEO Yves Guillemot. “This is unacceptable, as the toxic behaviors are in direct contrast to the values that I have never compromised, and never will.”
[Read: Tencent knocks Sony out of race to buy Warframe’s Leyou]
Ubisoft’s global head of human resources, Cécile Cornet, and the head of its Canadian arm, Yannis Mallat, also left their positions because of the scandal, with the latter leaving the company alongside Hascoët.
Ubisoft Forward made little difference to industry analysts
Saturday’s executive reorganization comes just three weeks after Ubisoft creative director Ashraf Ismail resigned from his position in the latest Assassin’s Creed Valhalla game. He had been accused through social media of infidelity and sexual misconduct with fans.
Shareholders might have hoped to find some relief in Ubisoft Forward, the company’s virtual conference organized in light of canceled E3 2020.
However, many of the study’s revelations had already leaked in the lead-up to the event, leaving little to surprise.
To make matters worse, reports emerged this morning that financial institutions Societe Generale and Jeffries have downgraded Ubisoft’s stock rating from “buy” to “hold,” meaning its analysts expect it to keep up with the market. , at least for now.
But that could prove difficult: Ubisoft shares have now fallen 6% over the past year, while the STOXX index of European technology stocks has risen 20%.
Posted on Jul 13, 2020 – 1:03 PM UTC
