Activision Blizzard CEO & Chairman sell nearly half their shares

[Celista]

The stock is at an all time high and stock prices are based on expectations. Even if Legion sells well if its not what was expected the stock will drop. Ordinarily I would assume they don't expect Legion to hit their projections but in this case I think its to pay off all the money they borrowed for their stake that has now come due.

That makes sense (although it could very well be for both reasons). Will be interesting to see Legion's sales figures in the next 6 weeks.

[Schmeebs]

They're selling them because they're going or will be going down soon, don't be so naive.

Or they are selling them because they see potential for more growth investing them somewhere else.
Or they are selling them to get liquid cash to make a large investment/purchase of some other type
Or they are selling them to put into more stable growth investments in preparation for retirement.
Or there is an employment clause with their stock options saying they have to sell a certain amount to keep under a certain ownership percentage and they will be getting more shares later.

Selling your shares just prior to major corporate event to prevent losses is called insider trading. Its possible they had to plan this sale MONTHS in advance. At my company for our stock purchase program we have to commit the amount of money 4 months beforehand to participate, then the stocks are bought and frozen for a month after that so we couldn't just get them, then immediately sell.

Or one of 50 other reasons.

[Jarilo1]

When your shares are higher than they're likely to get in the predictable future (which I'm assuming they are, 2016 was good for them) then it's a sound decision to sell some of them off if you plan on retiring from the business in the coming years, happens everywhere all the time with so many different variables it's just impossible to conclude they are "losing faith" in the company, especially when, as a company, they are doing good. I mean, hate the game all you want I don't care, but you need to be seriously mentally challenged to think a person on the business end on Blizzard gives a shit what you think or what anyone else thinks and that they make their financial decisions based on your worthless opinion.

[Gardrenn]

People with knowledge of the market always sell large percentages of stock in August/early September because market corrections and crashes always happen in Aug/Sept/Oct. This doesn't have anything to do with products or the company itself. Most analysts are expecting at least a correction in the next few months so he is probably just selling before that happens. You will probably see him reinvesting his money after the drop, when all the stocks rise in the holiday season he will make even more money. Some investors do this even earlier, hence the saying "sell in may and go (walk) away."

[masterhorus8]

People with knowledge of the market always sell large percentages of stock in August/early September because market corrections and crashes always happen in Aug/Sept/Oct. This doesn't have anything to do with products or the company itself. Most analysts are expecting at least a correction in the next few months so he is probably just selling before that happens. You will probably see him reinvesting his money after the drop, when all the stocks rise in the holiday season he will make even more money. Some investors do this even earlier, hence the saying "sell in may and go (walk) away."

Stop using logic! It doesn't work here.

[Seranthor]

http://www.bloomberg.com/news/articl...es-for-estates

It resulted in over a 5% drop today and probably won't end there. It would appear that these two are losing faith in the company.

Tragic that you didn't bother reading the article.

The share sales follow an announcement in May that Kotick and Kelly’s limited partnership, called ASAC II, would distribute the shares. Kotick and Kelly had acquired the stake through a complicated transaction with former owner Vivendi SA back in 2013.

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Well, great news!

Maybe that will tell Blizzard that they should actually LISTEN to feedback.

and another one that didn't read the article and jumped on the bash Blizzard bandwagon.

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Blizzard customer support is THE WORST in the industry.

Says who? you'll have to back up this claim.

[Alvito]

You don't think it's coincidental that the company's cash cow has a product release in two weeks and the CEO is dumping his stock? That being said, share sales can be due to a variety of reasons so we will see.

I don't work in finance anymore so I don't follow trends or finance news on a regular basis like I used to, not sure what is happening industry wise.

With the money that the other games are making WoW is one of a few cash cows in that stable.

[Seranthor]

That is why they relase subscription counts...............
...................waiiiiiiiiiit...

Well wait for you to magically tie this to Wow.

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I post about Blizzard. Take the hint.

And Activision is more than just Blizzard... and Blizzard is more than just World of Warcraft... Wake up.

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Send them a ticket and they will tell you to delete all of your addons and settings.

Depends on the problem, yes, they might. Still we wait for you to back up your claim that they are the worst in the industry... obviously you have never dealt with Daybreak or EA.

[hrugner]

This is the same guy who has been holding on to a huge portion of the stock after buying out of Vivendi 3 years ago right? I'm no finance guy, but wouldn't this lets him attract more large investors to the company without having to split the stock? And if he needs to sell off to attract more investors, then doing so before an upturn would give new investors the impression that they made a good buy and hang onto the stock longer. This would smooth out the damage from the sell off and create more dedicated investors, I don't understand reading this as a bad thing.

[Seranthor]

How many vanilla servers could you get for 700 mill?

None. How tragic.

[Eviscero]

Even if the sell off is for a specific purpose requiring capital and not because of slumping faith in the firm by insiders, it makes sense that other stock holders will sell off because ATVI has seen nice growth over the last 6 months. It'll drop a bit more, and I'll buy in at a steal of a price before it rebounds to where it should be.

[Cæli]

High ranked CEO and such have no clue about the product they're making money with.
They have no clue on what a video game is. Show me their top 10 best game of all time and ask them to name 5 good game composer, I bet the answer will be funny.
In that matter any decision they could make is irrelevant, it's just business. You can make business without knowing about what you're making money with. Any beliefs they have in a result of their understanding of the product could lead to any business decisions.

[Ulfric Trumpcloak]

Or they are selling them because they see potential for more growth investing them somewhere else.
Or they are selling them to get liquid cash to make a large investment/purchase of some other type
Or they are selling them to put into more stable growth investments in preparation for retirement.
Or there is an employment clause with their stock options saying they have to sell a certain amount to keep under a certain ownership percentage and they will be getting more shares later.

Selling your shares just prior to major corporate event to prevent losses is called insider trading. Its possible they had to plan this sale MONTHS in advance. At my company for our stock purchase program we have to commit the amount of money 4 months beforehand to participate, then the stocks are bought and frozen for a month after that so we couldn't just get them, then immediately sell.

Or one of 50 other reasons.

Said every fanboy ever...

[Eleccybubb]

Said every fanboy ever...

Said someone who has 0 fucking clue about stocks and shares work

[Kaleredar]

Seeing as Blizzard posted their most profitable quarter ever, I doubt they're "cutting and running."

[Seranthor]

Said every fanboy ever...

So what you are suggesting is that the CEO is engaging in insider trading, which can get him sent to federal prison... is THAT what you are suggesting is behind the stock sale

[|Dexter|]

There can be so many reasons these people sold a bunch of shares, and I don't think it will effect Blizzard or WoW unless the buyers of shares are anti Blizzard.... but it would be strange like Blizzard Games profit is a huge reason why "Activision" is still around

[Super Kami Dende]

Lmao some people will go to stupid lengths to be like "SEE SEE I TOLD YOU BLIZZARD IS DEAD!!!!!!"

Pathetic really.

[Eleccybubb]

Lmao some people will go to stupid lengths to be like "SEE SEE I TOLD YOU BLIZZARD IS DEAD!!!!!!"

Pathetic really.

I find it amusing tbh.

[Ulfric Trumpcloak]

Said someone who has 0 fucking clue about stocks and shares work

Now you're just salty, throwing f words around like that.