Unity CEO John Riccitiello Retires
Unity executive John Riccitiello has announced his retirement and step down as Chief Executive Officer of the game development platform company. After nearly a decade of leading Unity, Riccitiello expressed gratitude for the opportunity to serve the employees, customers, developers, and partners who have played a crucial role in the company's growth.
James Whitehurst Takes Over as Interim CEO
To ensure a smooth transition in leadership, James Whitehurst has been appointed as Interim Chief Executive Officer. Whitehurst previously held the position of CEO at RedHat, which was acquired by IBM. The leadership change will take effect immediately.
Market Reaction and Riccitiello's Background
Following the announcement, Unity's shares (ticker: U) experienced a modest decline of 0.7%, reaching $29.49 in after-hours trading on Monday.
Riccitiello joined Unity in 2014 when the company was still privately held. Prior to that, he served as the CEO of videogame publisher Electronic Arts (EA) from 2007 to 2013. However, during his tenure at EA, the company faced significant challenges, with their stock plunging by over 60%.
Turbulence for Unity and Future Plans
Riccitiello's departure comes at a time of turbulence for Unity. Recently, the company faced backlash from customers when it announced a controversial price hike plan. The reaction was so widespread that Unity was compelled to apologize and make revisions to the plan. As a consequence, the company's shares have fallen by 27% over the past three months.
In response to Riccitiello's retirement, Unity's board has initiated a search process to find a permanent CEO. They will collaborate with an executive search firm to identify the most suitable candidate.
Unity has reaffirmed its previously announced guidance for the third quarter of 2023 and will release its financial results on November 9.
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