February 10, 2005
Activision Executives Sell Stock
Executives at Activision filed to sell over 7 million shares of stock this morning according to a SEC filing. 7 million shares represents 5% of the company’s value. CEO Bobby Kotick is selling 2.55 million shares, Chairman Brian Kelly 2.5 million, and President Ron Doornink 1.07 million.One has to wonder if these sales have any significance to the executive’s thoughts on the video game cycle or if it is just a diversification move. Investors however don’t like the news, with Activision stock down 12.26% in the pre-market.
None of the selling stockholders sold more than one-third of their respective total holdings of common stock and options. This is the first sale of common stock by either the Chairman or the Co-Chairman since May 2002. The sales were conducted in a single block transaction to obtain the benefits of an orderly sale. The sales were also made to take advantage of a brief trading window and do not reflect any individual or collective judgment about the company's prospects. The sales were made to enable senior management to diversify their personal holdings.
