Multi-billionaire Jeff Bezos, the founder and executive chair of Amazon, has recently concluded an ambitious share sale plan, offloading a staggering 50 million Amazon shares over the past nine trading days, with a total value of approximately $8.5 billion.
This latest transaction, involving the sale of 14 million shares worth around $2.4 billion, marks the culmination of Bezos’ strategic divestment initiative.
Bezos’ decision to sell shares comes in the wake of Amazon’s remarkable stock performance, with the tech giant’s shares surging by more than 76% over the past year. In November, Amazon announced that Bezos would sell up to 50 million shares within the following year, signaling a deliberate effort by Bezos to capitalize on the company’s soaring valuation.
It’s worth noting that Bezos had refrained from selling Amazon shares since 2021, underscoring the significance of this recent divestment. Additionally, Bezos has also allocated shares for philanthropic endeavours, aligning with his commitment to charitable initiatives.
Bezos’ relocation from Seattle, Washington, to Miami, Florida, last year also carries financial implications, as the move will result in significant tax savings for him. With Florida’s absence of state taxes on incomes or capital gains, Bezos stands to save almost $600 million in taxes on the $8.5 billion worth of stock he has sold. However, he remains liable for federal taxes arising from the share sales.
Speculation surrounding Bezos’ relocation to Florida has stirred discussions about potential tax considerations, particularly in light of Washington state’s approval of a new tax on large stock sales. Bezos cited personal reasons for his move, including proximity to family and his Blue Origin space project, which is increasingly centered around Cape Canaveral.
Despite his divestment, Mr Bezos remains Amazon’s biggest shareholder and is one of the richest people in the world, with an estimated fortune of more than $190bn.