(Bloomberg) — Jeff Bezos plans to sell up to 50 million shares of Amazon.com Inc. over the next 12 months, possibly benefiting from a stock increase that puts him within reach of becoming the richest person in the world.
The disclosure comes after Amazon reported its best online sales growth since the start of the pandemic, sending its shares up about 8% to $172. Bezos’ wealth jumped a proportionate amount, gaining nearly $13 billion on Friday to put him about 5.7 billion dollars behind the first place Elon Musk, according to the Bloomberg Billionaires Index. Bezos has not been the first in the index since 2021.
The gap between Bezos and Musk narrowed as Amazon and Tesla Inc. stocks move in opposite directions. Amazon benefited from a rebound in tech stocks that sent U.S. stock indexes to all-time highs, while Tesla was weighed down by a series of negative headlines. Musk’s wealth could also take a hit after a Delaware judge voided his $55 billion package this week.
Read More: Tesla Gets a $94 Billion Reality Check as EV Winter Enters
Bezos, 60, has adopted a business plan to sell 50 million shares at any time before Jan. 31, 2025, according to a filing on Friday. That would be worth about $8.6 billion at the current stock price.
Amazon disclosed the planned stock sales by Bezos, other board members and senior executives in its annual report, complying with new Securities and Exchange Commission rules that require greater transparency for company insiders who sell stock under prearranged business plans.
A spokeswoman for the Seattle-based company declined to comment on the planned stock sales.
If Bezos follows through with the plan, it would mark the first time he has sold Amazon shares since 2021. He did, however, buy a single share of the company in May, his first recorded purchase in records going back to 2002, albeit without. an explanation
The Amazon co-founder recently announced he is moving to Miami from the Seattle area, which means Washington state could miss out on a tax benefit from any potential stock sale. Washington recently introduced a capital gains tax, while Florida does not.
Read More: He Fleeed California’s Taxes. Now He’s Fighting Them in Washington
–With help from Jack Witzig.
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Published: 03 Feb 2024, 00:22 IST