Following a reported $310 million dollar loss and the adoption of a “cost reduction plan” that laid off nearly 600 employees, Electronic Arts CEO John Riccitiello told investors Thursday that while caution would be prudent in the short-term, he was bullish about EA over the long haul.
“We’re not saying the sky is falling,” said Riccitiello. “What we are bringing to the table is caution, a recognition that catalog is weaker, and a commitment to managing our costs, both because it’s the right thing to do for business efficiency and it’s the right thing to do with a specter of a significant recession over our shoulder.”
Today, he backed up those words by nearly doubling the size of his own portfolio. According to a filing with the Securities and Exchange Commission, Riccitiello today purchased 42,500 shares of stock at a purchase price of around $24.50 apiece — a $1 million investment.
This isn’t the first time Riccitiello has dropped $1 million on EA stock. On May 20th, the EA CEO made a very similar investment, purchasing 20,000 shares days after the company posted a $454 million dollar yearly loss. The difference, of course, is that those shares, purchased at $48 apiece, have now lost half their value.
We’re not sure what, exactly, that says for the company’s prospects, but no matter where EA goes, it seems that Riccitiello’s fortunes will rise and fall with it.
November 5th, 2008 at 5:59 pm
Wow, considering his investment firm made about $500 million from the Bioware-Pandemic deal, I’d say that last investment was just a write-off.