Bezos’ Stake in Amazon Drops Below 10%

Jeff Bezos has now fallen below 10% ownership of Amazon for the first time in the company’s history, marking a significant point in his long-standing connection with the e-commerce giant that he started in a Seattle garage.

In a recent securities filing, he revealed that over the past year, he has sold more than 100 million shares, bringing his total to approximately 9% of the company’s outstanding shares.

A year ago, regulatory filings showed that Bezos held about 10.1% of Amazon. When the company went public back in 1997, his ownership stake was more than 43%.

This drop in his shareholding is part of a broader trend since he stepped down as CEO in 2021, passing daily operations to his successor, Andy Jassy. At that time, Bezos still owned around 14% of the company’s stock.

In February, he filed to sell 25 million shares, which could have netted him about $5 billion at that time. This was followed by another filing in August indicating plans to sell an additional 25 million shares, valued at roughly $5.4 billion.

Over recent months, he’s also donated more than 500,000 Amazon shares to various charities, as noted in SEC disclosures.

Amazon’s stock has seen a significant increase of 38% since late April, providing an opportune moment for Bezos to liquidate some of his shares.

This boost in stock price comes amid strong market interest in the company’s developments in artificial intelligence and cost-saving measures under Jassy’s leadership.

Despite the fluctuations in his stock ownership, Bezos continues to be one of the wealthiest people globally, with a net worth estimated at around $240 billion, following only Elon Musk and Bernard Arnault.

Having stepped back from Amazon, Bezos is now focusing on other projects, including the Washington Post, which he purchased in 2013, and his aerospace venture, Blue Origin. He is currently working to enhance the performance of both companies, recently making management changes.

Last year, he stated his aim was to “rebuild the Washington Post” and has initiated several adjustments to consolidate operations, including staff reductions of about 4% as they shift toward a digital-first approach.

His efforts are also targeted towards reorienting the opinion section to address topics like free markets and personal liberties, while advocating for changes in leadership and subscription approaches.

In June, Bezos married former TV anchor Lauren Sanchez in a glamorous ceremony in Venice, attended by notable personalities like Oprah Winfrey and Leonardo DiCaprio. He has often utilized stock sales to finance his various private endeavors, reiterating his intention to donate a significant portion of his wealth during his lifetime.

Interestingly, his ex-wife, philanthropist MacKenzie Scott, is also reducing her stake in Amazon. According to a regulatory filing viewed by Bloomberg, she has cut her shares by around 42% in the past year, equating to about $12.6 billion.

Initially, Scott relinquished 4% of her Amazon holdings following their divorce in 2019; she now possesses roughly 81 million shares and has donated more than $19 billion to charity since their separation.

The gradual decrease in Bezos’ stake in Amazon contrasts sharply with his earlier days when he owned nearly half of the company. Though his ownership is nearing single digits, he remains influential as executive chairman.

The company went public in 1997, raising about $54 million at an initial share price of $18, instantly making Bezos a millionaire. His wealth skyrocketed during the dot-com boom, transforming Amazon into a trillion-dollar empire.

Bezos officially stepped down as CEO in July 2021 after 27 years, passing leadership to Jassy, who had previously been instrumental in Amazon Web Services.

Under Jassy’s leadership, the company has expanded its sports rights portfolio significantly, including high-profile deals like Thursday Night Football and an upcoming agreement with the NBA.

Bezos’ stock sales this year were part of a pre-arranged trading plan designed to deter insider trading by scheduling share sales in advance.

As of now, neither Bezos nor Amazon has responded to comments regarding these developments.