Bach sold additional $3 million before 360 warranty extension
It was reported last month that Robbie Bach, current head of Microsoft's Entertainment and Devices unit (which contains both the Xbox and Zune), sold millions in stock during the months leading up to the July announcement that the Xbox 360 warranty had been extended to three years. It was initially reported that Bach sold $6.2 million in stock between May 2nd and the July announcement. Announced today by Dow Jones (via CNN), it looks like Bach actually sold an additional $3 million that went unreported due to "an administrative error."Microsoft still maintains that the stock transactions, including the recently uncovered $3 million, were in no way related to the warranty announcement. Furthermore, a Microsoft spokesperson claims that the company has "followed the procedures required of late-filers and is now in full compliance." It's worth noting that Microsoft's stock value saw little change after the warranty announcement -- which incurred a loss of over $1 billion to the company -- so Microsoft's claims about Bach's transactions still hold water for the moment.
[Via Joystiq]
Reader Comments (Page 1 of 1)
JBurton90 @ Aug 14th 2007 5:12PM
So is he being accused of the same thing Martha Stewart did?
That would suck.
Tony @ Aug 14th 2007 5:16PM
Or Enron, from what I understood of it.
The thing is there's very little to really back this up with anything that couldn't also be labeled as "coincidental". It's impossible to say and, furthermore, you'd think more people would be involved in it if it was considered some major issue.
Emily @ Aug 14th 2007 5:17PM
I think you miss typed a link. The Warrenty is in the period.
xenocidic @ Aug 14th 2007 5:23PM
What's the point of being an exec at a multi-billion dollar company if you can't participate in a little harmless insider trading?
it's a victimless crime !
xenocidic @ Aug 14th 2007 5:24PM
(...like punching someone in the dark)
UNSCleric @ Aug 14th 2007 6:01PM
I've already looked into this and it's a joke. Why is X3F posting this trash? Leave it up to IGN and GameSpot to hype this up like it means anything.
JimyD @ Aug 14th 2007 6:59PM
The cats at the SEC must be licking their chops on this one.
massive_98 @ Aug 14th 2007 7:01PM
http://www.alexa.com/data/details/traffic_details?site0=http%3A%2F%2Fwww.blu-raydisc.com%2F&site1=http%3A%2F%2Fwww.thelookandsoundofperfect.com%2F&site2=www.blu-ray.com&site3=www.sonypictures.com%2Fhomevideo%2Fbluray%2F&site4=&y=r&z=3&h=300&w=610&range=3m&size=Medium&url=spock.com
MYPS3KilledMy360 @ Aug 14th 2007 7:01PM
Are you kidding me there is a major possiblity that hes not the only one doing a little bit of selling. if i knew about that w3 arrenty before it happened and i had a piece of MS in my back pocket i would of made quite a bit of change of it. what is 6 million or 3 million to microsoft anyway. 2 tears in a bucket fuck it!
BDB @ Aug 14th 2007 7:23PM
My guess is that he had expiring stock options and he could either sell them and get the $3M or he could let them expire and get $0. What would you do? While I do not LOVE microsoft the 360 is by far the best thing on the market and im hoping they are not dumb enough to commit insider trading... this whole bit is non-news...
Tony @ Aug 14th 2007 7:36PM
@9 So if tons of people were selling all of this, wouldn't we know about all of these other major players that did it beyond Bach? He's the only one that's ever been brought up.
ccc @ Aug 14th 2007 7:56PM
Yo, few weeks ago a video was put up here showing this game that looked like an elderscrolls game in both 3rd and 1rst person views. I remember something being said about the developers asking people not to show the leaked video but can't remember what game it was, any1 remember?
clavian @ Aug 14th 2007 8:51PM
I work in the securities industry, and let me say this wreaks of insider trading. Bad form.
UNSCleric @ Aug 14th 2007 9:21PM
Not a surprise that Richard is going to let this story be the headline story throughout the entire evening until tomorrow. Why do you work for Xbox360fanboy, just for the money I'm assuming?
Grant @ Aug 14th 2007 9:40PM
when did execs get so dumb?
if your going to start dumping stock, you need to make frequent smaller trades over the period of a few months, then relatively, even if a big dump is made, it looks less fishy. Common people, white collar crime 101.
sure, you might make a bit less money, but it keeps your ass out of jail.
Josh @ Aug 14th 2007 11:54PM
Richard, can I get your e-mail please? Possibility of an interesting blog post.
Jp2m5@aim.com
xenocidic @ Aug 15th 2007 8:32AM
@16
http://xbox.joystiq.com/tips/
Faraz Mahmood @ Aug 15th 2007 10:39AM
@ 12 project offset maybe??
Stephen @ Aug 15th 2007 10:41AM
Anyone ever think that this guy just has a gambling problem and needs to liquidate some assets to payoff a Las Vegas bookie? Did you guys think of that?
:oP
ccc @ Aug 15th 2007 10:56AM
@18
Yes thanx
Richard Mitchell @ Aug 15th 2007 10:56AM
UNSCleric,
I'm not exactly sure what exception you take to this story...
Bach sold more stock than was initially reported. That's it. What is there to be angry about?
UNSCleric @ Aug 15th 2007 4:21PM
That it's a garbage story to begin with. Look at the dates he actually sold the stocks, and look at the impact of Microsoft's stock after the supposed "huge" warranty announcement. Bach doesn't give a **** about a couple million dollars or some warranty extension, it's not a big deal and it's a non-story that is being sensationalized by people who have no idea what they're talking about.
Even if the warranty announcement would have had some huge impact, which it never would of, last I looked, he sold no stock in the 30 days leading up to the warranty extension, and MS announced the extension the same day that he decided on it.
UNSCleric @ Aug 15th 2007 4:22PM
*they decided it
bobworth @ Aug 18th 2007 4:42AM
Hey idiots,
Executives of companies SELL STOCK ALL OF THE TIME as a means of diversifying ones portfolio. I'm sure Gates and Balmer sold shares over the same period. It doesn't mean anything. The share price wasn't even affected by the announcement of the warranty extension.
White collar crime should be taken seriously. This is not it. People believe the worst far too easily these days, especially when they don't don't have a clue as to what is really going on.
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