Uh-oh…something is up at Microsoft.
According to GameDailyBiz, Microsoft’s Robbie Bach - President of the Entertainment and Devices Division - has sold a whopping $6.2 Million dollars of Microsoft stock in the last few months.
GameDailyBiz explains:
According to a story in Dow Jones, the President of Microsoft’s Entertainment & Devices Division, Robbie Bach, recently sold $6.2 million worth of company stock. This is notable because the company recently offered to extend warranties on all Xbox 360s to three years and take a $1.15 billion hit to its fourth-quarter earnings to account for the system failures.
“In the last couple of months, we started to see significant increases in repair requests … and significant attention from people,” said Robbie Bach during a conference call last week. “So we geared up to respond to that.”
A review with the Securities and Exchange Commission showed that Bach’s stock sales amounting to $6.2 million happened between May 2 and last Thursday’s announcement. The filings showed that the most recent sales happened between May 25 and May 30. The announcement made Microsoft’s stock drop only a little, roughly $0.50.
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Ben Silverman, director of research at Indie Research, doesn’t think there’s any foul play involved, however. “It doesn’t necessarily mean [insiders] think that there will be a bad event; it could just be financial planning. But sometimes it just looks bad that an insider has sold stock,” said Silverman. “I’d give [Bach] the benefit of the doubt here, especially because the stock didn’t move very much [after last week's announcement].”
Okay, so it could have been a personal reason. Maybe he just needed six and a half million dollars for something: repayment of debts, purchasing a new home. But isn’t it just a little strange to see that kind of sale from the head of Entertainment & Devices?
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