EA exec sells entire stake in company

Discussion in 'User Submitted News' started by ComeTurismO, May 11, 2013.

  1. ComeTurismO
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    ComeTurismO CTO

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    4:54 PM
    :arrow: GameSpot
    Well guys, in an SEC document (which was filed Thursday), Wilson sold al 32,085 shares at $21 each. He earned $687,000. The rest you can see above. Wilson now holds zero shares in EA. He also happens to be the only EA executive in such position. EA shares skyrocketed after announcing the Disney Star Wars Deal as well as the FIFA license extension.
    However, if Wilson cashed out a few days back, he would've received thousands of dollars less, as EA shares bounced between $17 and $18 on Monday and Tuesday.

    --
    I find this a smart move, kind of. But, EA is still worse than the mafia. :angry:
     
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  5. RupeeClock

    RupeeClock Colors 3D Snivy!

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    Chances are he will buy EA shares again if the company falls any further, which is likely if they screw up their Star Wars license.
     
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  6. Taleweaver

    Taleweaver Storywriter

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    And now for my new kickstarter project: "make EA suck less". Target goal: $687,000. :P
     
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  7. RchUncleSkeleton

    RchUncleSkeleton Skeletron 9000

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    Either he knows the company is tanking or he's waiting til the stock drops to buy back in. I for one would never invest in a cold hearted greed driven company.
     
  8. war2thegrave

    war2thegrave GBAtemp Regular

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    I guess that means that you won't be investing at all then.
     
  9. Ray Lewis

    Ray Lewis Banned

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    Standard, he felt the position would not be higher (maximize returns), and sold it all. Could be done, does not mean anything about EA. Stocks rise/fall, just life, and fixed casino gulag, lol.
     
  10. Nathan Drake

    Nathan Drake Obligations fulfilled, now I depart.

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    This is the kind of stuff people who play the stock market big time wait for. Nothing unusual. Odds are, he contributed nothing to EA except owning a large part of it.
     
  11. Taleweaver

    Taleweaver Storywriter

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    On the contrary: it would seriously surprise me if he didn't help out in a significant way to net those two deals. Greed driven or not...

    Wait...let me rephrase that...

    Though very greed-driven, you cannot deny that it actually gets results. It's like that guy that said "greed is good"*. Unfortunate as it might be...he was right about it.




    *Gordon Gekko (Michael Douglas) in the movie Wall street
     
  12. Bladexdsl

    Bladexdsl ZOMG my posts...it's over 9000!!!

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    even the execs have had enough of EA :creep:
     
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  13. Pleng

    Pleng GBAtemp Advanced Maniac

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    I hope you're not considering a future in investments or financial advice, as those two properties are pretty much ideal for a money making investment!
     
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  14. duffmmann

    duffmmann GBAtemp Psycho!

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    This whole situation reeks of insider trading. Wouldn't be surprised if EA stocks fall soon.
     
  15. Qtis

    Qtis Grey Knight Inquisitor

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    Insider trading would be if he had bought the stock just a few days before the deals were signed, which I doubt very much. This could be compared to a company releasing its financial statement every year. After the deals were made public, anyone can do the same decision and sell the stock, since everyone has the same information. If this situation was considered insider trading, the whole stock market would be considered insider trading.
     
  16. FAST6191

    FAST6191 Techromancer

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    It is only insider trading it you use your insider knowledge before the announcements are made public (which given this was Thursday and the announcements hit a couple of days prior...). So given this came after the public announcements and he sold them it is unlikely he engaged in any. That said their annual report is typically filed in a couple of weeks and the last quarter filing was not so hot in a lot of ways (though it was not seen as such by the market).

    As for rebuying shares.... it is a well accepted practice.

    I pulled up last year's SEC filing and "We have not paid any cash dividends and do not anticipate paying cash dividends in the foreseeable future." was part of it and the executive bonuses did not seem to be tied to amount of stock owned (though the proxy statement was dry even by accounting standards so I could well have missed it). The only minor problem is that various execs were required to own common stock or something similar.
     
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  17. Taleweaver

    Taleweaver Storywriter

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    Not entirely unlikely. First of all, he obviously waited to sell until those two deals were made public (it doesn't take a genius to know that this will make the company more valuable), but that's not illegal.
    It would be insider trading if that exec knows something that the general public has yet to find out. Something in the lines of "those games will run on the same servers as simcity". Or major budget cuts on the programming or testing environments. It could very well be that that guy realizes that the expected quality Disney and FIFA are expecting can't be delivered.


    (note: I'm mostly familiar with the stock market in terms of scandals, so I may not be the best resource on this).
     
  18. duffmmann

    duffmmann GBAtemp Psycho!

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    Or if he knows the stocks are about to plummit.
     
  19. Gahars

    Gahars Bakayaro Banzai

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    EA has had a mix of financial struggles and public fiascoes for awhile now. It doesn't take insider knowledge to figure out that cashing out while you still can is a good idea.
     
  20. duffmmann

    duffmmann GBAtemp Psycho!

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    Eh, the same could have been said about Kmart, yet they busted Martha Stewart for it.
     
  21. Gahars

    Gahars Bakayaro Banzai

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    Um, no? Martha Stewart was busted over ImCell, and the information she received (that their drug had failed FDA testing) was anything but obvious, public knowledge.

    You're comparing apples and monster trucks here.
     
  22. duffmmann

    duffmmann GBAtemp Psycho!

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    That's really my point here. We don't know everything that's happening at EA, maybe this guy knows something behind closed doors that's about to happen at EA which is why the stocks would plummet. That's been my point here all along.
     
  23. Gahars

    Gahars Bakayaro Banzai

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    We know that EA's been struggling financially for awhile now. Many of their recent titles have under performed and they've been laying off staff. Couple that with some very public fiascoes (like the SimCity debacle) and it's no secret that EA isn't doing well. Their stock has been on a downward trend for quite awhile now. There is no need for insider knowledge to tell that EA's prospects aren't good.

    Really, you're jumping to a wild conclusion here without any basis in evidence or fact.