MS Exec Bach Sells $6.2 Million of company stock prior to 'Warranty Extension' Announcement

Written by Xav de Matos

Wednesday, 11 July 2007 21:35

While we sift through the news and impressions from our fearless leader live from the shores of Santa Monica, an interesting story has emerged from the Microsoft camp.

MarketWatch.com is reporting that Robbie Bach, president of the Microsoft Corporation entertainment and devices division, unloaded $6.2 million in company stock from May 2nd until the announcement of the Xbox 360 warranty extension plan on Thursday, June 5th, 2007.

Although it is common practice for executives to buy and sell stock - the timing of the action has been called into question, considering Bach had never exercised the right to sell any company stock of this magnitude prior to May 2nd. Ordinarily, selling stock at this level is scheduled in order to quell suspicion of insider trading; however, no stock moves made by Bach were previously scheduled.

Microsoft spokesman Eric Hollreiser told MarketWatch, "Robbie Bach's past trading is completely unrelated to last week's announcement. ... [He] continues to hold a significant stake in Microsoft and remains confident in the long-term success of the company." Robbie Bach was not available to comment on the situation.

Although the announcement to extend all Xbox 360 warranties for three years made late last week - which was discussed during BitCast #15 - is rumored to cost Microsoft approximately $1.15 billion in losses, the Microsoft stock price took a minor dent on Wall Street.

"I'd give [Bach] the benefit of the doubt here," said Ben Silverman, director of research at Indie Research, a firm that tracks insider sales for investors, "Especially because the stock didn't move very much [after last week's announcement]."

[Via Kotaku]

Comments (3) Add Comment

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written by Dan Zuccarelli, July 12, 2007

I gotta say I think this one's a non-story. Would be way to obvious if he did it on purpose.

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written by Jim Squires, July 12, 2007

I tried to sell my stock, but the damned ticker kept freezing up on me. When I called tech support, they told me it was because I had it plugged into a surge protector.

...
written by OPT1MUS PR1ME, July 12, 2007

I think this is a non-story as well. Seems to me that a lot of people are trying to make a story out of nothing. Executives sell there stocks at big companies all the time. A lot stocks are distributed to them as bonuses and by selling them it is extra income.

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