Jeff Bezos has sold 24 million of his Amazon shares. This sale has made him more than $4 billion. It’s the first time the Amazon founder sold company shares since 2021, as per Bloomberg. This development follows his announcement of an intention to sell up to 50 million shares over the next 12 months. However, the second richest man on earth sold nearly half of it in just four days.
Amazon’s share price performance, which saw a 13% increase earlier this year. However, following the last day Bezos sold shares, Amazon’s stock slipped 2.2% to $168.64 on February 13.
Amazon’s online sales grew a lot, the most since the pandemic started. This made Amazon’s stock price go up by almost 8% to $172. Jeff Bezos got much richer by adding $12.1 billion to his wealth in just one day. Now, he’s only $8.1 billion short of reaching Elon Musk, the world’s richest man, according to the Bloomberg Billionaires Index. Bezos hasn’t been the richest since 2021.
Saving taxes worth $288 million
The reason for Bezos selling his Amazon shares hasn’t been disclosed. However, Bezos earlier revealed a major personal decision: relocating to Miami from the Seattle area.
His move to Florida, a state known for not imposing a capital gains tax, contrasts starkly with Washington state’s 7% tax on such earnings introduced in 2022. This strategic change of base could help Bezos save around $288 million in taxes.
Despite the buzz around these transactions, both Amazon and Bezos have kept silent, offering no comments on the matter to Bloomberg. The implications of Bezos’s actions extend beyond his personal finances, potentially impacting Washington state’s revenue from the capital gains tax.
This tax, which brought in $855 million for Washington in 2023, partly relies on contributions from the state’s richest people. Billionaire Ken Fisher recently said he would move from Washington to Texas due to the heavy capital gains tax.
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Published: 14 Feb 2024, 06:49 AM IST