Sim Wong Hoo: Creative no more?

Creative Technology's chairman and CEO Sim Wong Hoo sold 2 mln of his Creative shares to co-founder Chay Kwong Soon.

This brings his shareholding in the company down to 28.75% from 31.15%.

Why?

No reasons were given in the announcement out Wednesday night and the company spokesperson couldn't comment either.

So here's why I think Sim sold down.

One, maybe he has stopped believing in his company.

Things haven't been going well for Creative.

Its focus MP3 players aren't selling that well and it's now even teaming up with 'the enemy' to sell iPod accessories.

There doesn't seem to be a win in this for Sim, so he might be feeling slightly emotional now and just wants to sell down a bit.

Two, he may be feeling paternal and wants to loan the proceeds from the sale to the company.

It's a less likely reason, because if Creative really needs the money, it'll get some from the bank.

And lastly, a less “conspiracy theory” reason: Christmas shopping.

I'm going to venture that the least likely reason would be him ditching his company.

Sim isn't going to stop believing in his baby of a company just because it's going through a rough patch.

He's been through worse in Creative's early days.

Perhaps the reason may be personal and not commercial.

But I'd still really like to know what it is.

Call me, Mr Sim?

Serene Lim