We are familiar with the transfers coming from the executives of the companies, but it becomes more surprising if it happens under the name of the most successful companies recently. Eric Yuan, the chief executive officer of Zoom Video Communications Inc., transfers stock worth over $6 billion. The recipient of the transfer was not specified, but it can be said that this action shows consistency considering the trend that ultra-rich investors sell their stocks lately.
As everybody knows, Zoom was obviously one of the winners of the pandemic. The changing conditions in the working environment created a space for the video communication platform. The company’s stock skyrocketed four times in the last year. This rise made Eric Yuan the world’s 130th-richest person with a pre-transfer net worth of $15.1 billion. However, the picture reversed and the stock price has declined by 7.8 percent in 2021 according to a report by Bloomberg.
The reason for the transfer is not exactly known; however, a Zoom spokesperson stated that it matches with the “typical estate planning practices” of the 51-years-old businessperson.
Selling a high amount of stock is not specific to this case and it happened a lot recently. The world’s richest person and the founder of Amazon, Jeff Bezos has donated Amazon shares worth $10 billion as support for combating climate change. Hong Kong billionaire Li Ka-shing transferred a minor part of his Zoom holdings to his son. As TheRichest reported, Ron Baron and Warren Buffet have also sold their shares in Tesla Motors and Apple recently.
As we mentioned before, we do not know the recipient of the stock, but we know that it is owned by a Grantor Retained Annuity Trust or GRAT. Yuan is a trustee of GRAT. The shares have reached the value of $6 billion and most importantly, the stocks started to rise again in the last three days. There is a 10% increase in the stock price supported by a bullish trend.