Jeff Bezos offloads $4 billion worth of Amazon shares, capitalizing on the surge in Amazon’s value
Jeff Bezos wasted no time in capitalizing on Amazon.com Inc.’s early-year surge by initiating the cashing-in process.
In less than a fortnight after announcing intentions to divest up to 50 million shares of his company, Bezos has already sold 24 million shares, totaling over $4 billion. These transactions, disclosed in regulatory filings, occurred within a span of merely four trading days. Prior to this, the world’s second-richest individual had not sold any stock since 2021.
Bezos has not provided a rationale for his current sales, but the timing of when he initiated the trading plan could offer insight. His announcement of relocating from the Seattle area to Miami came on November 2, followed by the adoption of a 10(b)5-1 plan on November 8.
Washington state implemented a 7% capital gains tax in 2022, a levy absent in Florida, indicating that Bezos’s move is probably conserving him $288 million thus far. Given Bezos’s ownership of just one share of Amazon, acquired at the company’s inception, it’s reasonable to infer that nearly all of the stock’s value would be categorized as capital gains.
Amazon shares had surged by 13% year-to-date as of the close of trading on Monday, which marked the final day Bezos conducted share sales, as reported in a filing. However, they experienced a 2.2% decline to $168.64 on Tuesday.
Spokespeople for Amazon and Bezos declined to comment.
A tax payment of $288 million would represent a substantial gain for Washington, which collected $855 million from the capital gains tax in the previous year. State officials report that over half of this amount, derived from just 10 individuals, contributed significantly to the total revenue.
There has been opposition to the tax within the state. Billionaire Ken Fisher announced in March his intention to relocate his firm from Washington to Texas, citing his disapproval of the tax and the court’s ruling that upheld it. A ballot initiative may be presented to voters in November, aiming to overturn the levy.
Reliance Communications (RCom) is planning to spend $80 million (Rs 523 crore) for expanding its data centre facilities in India Read more
NEW DELHI: It should have been like K Street (a US TV series on powerful lobbyist firms). But it's become Read more
Amazon and Flipkart, the two largest e-commerce players in the country, have temporarily stopped accepting cash on delivery for new Read more
Flipkart Internet Private Limited, the locally registered marketplace unit of the online retail giant, has seen its losses more than Read more
