Unity Execs Offload Shares Before Controversial Fee Announcement

Unity Software Inc U, a prominent cross-platform game engine company, recently introduced a controversial fee structure known as the Runtime Fee.

Under this arrangement, developers will be charged based on the number of installations for games created with the Unity engine once they exceed a specific threshold.

The announcement made on Sept. 12, which is set to take effect from Jan. 1, 2024, has drawn considerable backlash, leading to a notable drop in Unity's stock price.

Adding intrigue to the situation is the revelation that several high-ranking Unity executives had sold substantial amounts of the company's stock in the weeks preceding the contentious fee announcement, Guru Focus reported.

Unity CEO John Riccitiello, recognized as one of the gaming industry's top earners, sold 2,000 Unity shares on Sept. 6, just one week prior to the fee's unveiling.

See Also: Why Unity Software Stock Is Falling Today

This sale aligns with an ongoing trend, as Riccitiello had previously offloaded 50,610 shares over the past year, without making any equivalent stock acquisitions.

Riccitiello is not the sole executive involved in these stock sales. Other members of Unity's board also engaged in significant divestments before the disclosure of the "plan pricing and packaging updates."

Notably, Tomer Bar-Zeev, Unity's President of Growth, sold 37,500 shares on September 1, amounting to approximately $1,406,250, while board director Shlomo Dovrat sold 68,454 shares on August 30, totaling around $2,576,608.

Against this backdrop, developers have expressed concerns about Unity's new fee structure. Many find fault with the unclear and unpredictable nature of the company's decision to impose a per-installation fee after a certain number of game sales.

Consequently, some developers have publicly declared their intention to discontinue their use of Unity.

Price Action: Unity was trading 2.7% lower at $35.81 at the time of publication Thursday.

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Image credits: nikkimeel on Shutterstock.