NEW YORK: Jeff Bezos didn’t wait long to start cashing in on Amazon.com Inc’s rally to start the year.
Less than two weeks after disclosing a plan to dispose of as many as 50 million shares of the company he founded, Bezos has offloaded 24 million shares, worth more than US$4bil.
The sales, revealed in regulatory filings, took place over just four trading days. The world’s second-richest person previously hadn’t sold stock since 2021.
Bezos hasn’t explained why he’s selling now, but the timing of when he instituted the trading plan may provide a clue. He announced on Nov 2 he was moving to Miami from the Seattle region. He adopted a so-called 10(b)5-1 plan on Nov 8.
Washington state instituted a 7% capital gains tax in 2022 – something Florida doesn’t have – meaning Bezos’s relocation is likely saving him US$288 million so far.
Because Bezos has only ever bought a single share of Amazon, it’s safe to assume he’s owned the stock since the company was founded and therefore virtually all of their value would be considered capital gains.
Amazon shares were up 13% this year through Monday’s close, the last day on which Bezos sold shares, according to a filing. They slipped 2.2% to US$168.64 on Tuesday. — Bloomberg