Riccitiello Buys Over $1 Million Worth of EA Stock

CEO of Electronic Arts John Riccitiello has bought over USD 1 million worth of stock in his own company, a SEC filing shows. The outspoken exec bought 42,500 shares at USD 24.50 per share, costing USD 1.04 million.

Late last week EA announced plans to lay-off up to 600 employees to cut costs of around USD 50 million.

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nbsmatambo4025d ago

so wat xactly does this mean -.-...

ThatArtGuy4025d ago

It means that he knows something that we don't.

Socom4025d ago

It means EA is siding with the winner of the war and he knows it.

Kratos Spartan4025d ago

something is about to go down

Ju4025d ago

Wouldn't you sell your stocks in that case? Just saying.

PS3n3604025d ago

He is trying to keep his cash cow from becoming hamburger. Also if you follow stocks, layoffs (efficiency) often send stock prices up. This sorta sounds like insider trading to me.

Ju4025d ago

Hm, that's something for a lawyer I guess. OTHO, it makes me curious why he'd put $1M into the company when they face rough times. Sounds risky to me. Or he doesn't take it lightly and tries to save his company (effectively taking a pay cut).

Well, yes, except if he'd play dirty, fakes numbers and tries to get the money back through a higher share price due to false reporting...that would be criminal.

IdleLeeSiuLung4024d ago

Well, it could be several reasons:

- he might see some changes in business and that the stock is undervalued due to the massive negative news
- some kind of inside conspiracy to try and inflate the stock price and install confidence in the company. after all, if the ceo is buying $1 million worth of stock (out of his gazillion yearly salary) the stock must be undervalued. basically building hype and confidence to keep his job maybe?

I'm not buying shares in EA, because game business is kind of like a one hit wonder just like toys. Unless it is Blizzard, every game they have released have been a hit!

PS3n3604025d ago

what does this have to do with the ps3? If anything EA is in this mess becuase console sales (360 and ps3) in general are pretty weak leading to low software sales.

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