401
Unity bosses sold stock days before development fees announcement, raising eyebrows
(www.eurogamer.net)
this post was submitted on 13 Sep 2023
401 points (93.3% liked)
Games
16815 readers
288 users here now
Video game news oriented community. No NanoUFO is not a bot :)
Posts.
- News oriented content (general reviews, previews or retrospectives allowed).
- Broad discussion posts (preferably not only about a specific game).
- No humor/memes etc..
- No affiliate links
- No advertising.
- No clickbait, editorialized, sensational titles. State the game in question in the title. No all caps.
- No self promotion.
- No duplicate posts, newer post will be deleted unless there is more discussion in one of the posts.
- No politics.
Comments.
- No personal attacks.
- Obey instance rules.
- No low effort comments(one or two words, emoji etc..)
- Please use spoiler tags for spoilers.
My goal is just to have a community where people can go and see what new game news is out for the day and comment on it.
Other communities:
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
This isn't insider trading?
My friend told me about this earlier and that's exactly what I thought. They knew this wouldn't be popular and would drop the value so they sold before the announcement, that's got to be insider trading
Now the share price will drop and he will buy his share back at a discount. Then they will revert the policy and share prices will rise. Boom! Free monies!
And when it's all said and done, we just have to wait, on our knees, for the trickle down Yay! Unfettered Capitalism working just as intended.
When you think about it, trickle down economics is essentially getting a golden shower from the rich.
Oh, if we're lucky its just a golden shower...
Trickle on me, daddy.
He’s actually sold over 50,000 shares and not bought any. It’s just unloading.
It's too early to buy back.
Read even the text posted in the OP. They’ve been selling all year, likely due to being paid in stock.
They probably have automated sell of dates or automated sell of prices.
This is part of a consistent pattern over the last year.
He probably hasn’t bought any stocks due to receiving stock as part of his employment contract.
It could be insider trading, but considering how companies have been doing pricing structures and rapid shifts from free to subscription based and then seeing sales/profit increase I imagine it’s worth it for them to simply keep the stock long term, but an initial sell off was put in place at a certain price. Sometimes there’s smoke and there’s fire, and sometimes it’s just simply the fumes of capitalism creating a system that’s uniquely imbalanced for everyone else, but isn’t really insider trading.
Not if it is an automated scheduled sell and reported to the SEC.
I feel like a scheduled sell shouldn't mean insider trading investigation is off the table.
Does it really matter if they decided to sell just before they devalue their company, or they devalued their company right after a sell? They knew about both before hand, and they can have the same intent either way.
I suppose, but that's a different crime under a different statute Im guessing. (Tanking the company because gou have a scheduled sell, versus selling because you tanked the company.)
They’ve been consistently selling off stock for the last year as noted in the article. Many of these execs get paid in a combination of cash and shares. To get their full wage they sell shares.
According to the Form 4 filed with this sale, the trade was planned at least as of May 19 using a 10b5-1.
https://www.sec.gov/Archives/edgar/data/1193857/000181080623000163/xslF345X05/wf-form4_169420518678431.xml
No, as the article says they’ve been doing it all year. Many execs and important employees often get paid a big chunk of their wage in stock. To get cash they need to sell stock.
I think the part where they had a trend of selling over the course of a year makes this not insider trading (or harder to prove if they were playing the long game).
Yes.