this post was submitted on 18 Sep 2023
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Unity Backpedals on Its Horrible Plan for Game Install Fees Amid Developer Backlash::Unity CEO John Riccitiello reportedly sold thousands of shares of stock in the weeks ahead of the fee announcement.

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[–] [email protected] 125 points 1 year ago* (last edited 1 year ago) (2 children)

Step 1: Propose an incredibly stupid, greedy, unpopular move that gets everyone pissed off.

Step 2: Announce a change of plans due to the feedback, and implement your original less stupid, greedy, unpopular move.

[–] [email protected] 30 points 1 year ago* (last edited 1 year ago) (1 children)

Step 2 is sell/short stock not revert idiotic changes

[–] [email protected] 22 points 1 year ago (1 children)

That's step 0. They've already done it.

[–] [email protected] 0 points 1 year ago (1 children)

I don't know whether you care about the specifics, but just in case you do...

Selling stock you own before a price drop isn't selling short. Insider trading yes, but not selling short.

Selling short requires you borrow stock you don't own and then sell it, with a promise to purchase it later. If you know a price drop is coming, then you make money on the fact that you've sold it at a higher price than you need to pay to purchase it.

[–] [email protected] 1 points 1 year ago

The comment I was replying to said "sell/short", either being strategies to protect yourself when you've got insider info that your company is about to hemorrhage money.

[–] [email protected] 11 points 1 year ago
[–] [email protected] 67 points 1 year ago (2 children)

CEO should not be compensated in shares because they have insider information and can benefit from manipulation. It has always been a recipe for disaster.

[–] [email protected] 5 points 1 year ago

I feel like no executive should be able to exercise their stock options while they still work at the company.

[–] [email protected] 64 points 1 year ago (1 children)

If I were a developer, the fact that Unity seriously considered doing this means I would stop using it as soon as possible. Even if they reverted it now, they can't be trusted to not try something similarly shitty later.

[–] [email protected] 15 points 1 year ago* (last edited 1 year ago) (1 children)

Godot is open source, hope this news boost its development

[–] [email protected] 13 points 1 year ago

Their development fund apparently doubled and every developer realizes the value of open source tooling now. I’d think it’s going to get plenty of attention, both in terms of development and contributions to the wider ecosystem.

[–] [email protected] 30 points 1 year ago

Even if they actually backpedaled, I don’t care! They’ve already shown what they’re willing to try to get away with. Even if they didn’t succeed, it says a lot about where their head is, and I can’t trust a company like that.

[–] [email protected] 22 points 1 year ago
[–] [email protected] 17 points 1 year ago

Good to see businesses still backpedaling.

It's getting frightening that companies are basically at the point of "We plan to take all your money and there's nothing you can do about it, bitch."

Fuck you unity. I wanna see this kill your whole platform.

[–] [email protected] 8 points 1 year ago (3 children)

I keep seeing this thing about the CEO selling shares. It was an automatic sell that was preplanned way in advance. That's what the rule 10b-5 trading plan means in the disclosures.

[–] [email protected] 29 points 1 year ago

I don't see how this is a defense. If it's scheduled, he knows it's happening. He could have just delayed the announcement until the day after his shares were scheduled to sell, and the intention is the same. Having a schedule doesn't exempt you from insider trading, it's a procedure that needs to be followed.

On the other hand, the better defense here is that he's a multi millionaire or billionaire, and he sold like $80k worth of shares. If he was really intending to dump, he'd be selling like 100x this amount.

[–] [email protected] 22 points 1 year ago

It was a cancellable automatic sell. Which means it's just a way to make insider trading legal. Everything is legal if you're rich.

[–] [email protected] 6 points 1 year ago* (last edited 1 year ago)

Too late, on my way to Godot, lesson 3, bye-bye suckas.