It didn't take long for Jeff Bezos to start profiting from the rise in Amazon.com's stock price earlier this year.
Less than two weeks after revealing plans to sell up to 50 million shares of the company he founded, Bezos sold 24 million shares worth more than $4 billion. The sale, disclosed in a regulatory filing, took place in just four business days. The world's second richest man had not sold any of his shares since 2021.
Bezos hasn't explained why he's selling now, but the timing of his plan for the deal may provide a clue. He announced on November 2nd that he would be moving from the Seattle area to Miami. He adopted the so-called 10(b) 5-1 plan on November 8th.
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Washington state introduced a 7% capital gains tax in 2022, something Florida doesn't have, and Bezos' move is likely to save him $288 million so far. Since Mr. Bezos has only ever bought one share of Amazon stock, it is safe to assume that he has owned the stock since the company's inception, and therefore essentially all of its value is in Capital. considered a gain.
Amazon shares rose 13% this year through Monday's close, the last day Bezos sold his shares, according to filings. It fell 2.2% to $168.64 on Tuesday.
Spokespeople for Amazon and Bezos declined to comment.
The $288 million tax bill represents a sizable windfall for Washington, which collected $855 million in capital gains taxes last year, more than half of which came from just 10 people, state officials said. That's what it means.
The tax has received some backlash in the state. Billionaire Ken Fisher criticized the tax and the court ruling that upheld it in March, saying he would move his company from Washington to Texas. A ballot initiative seeking to repeal the levy could reach voters in November.
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