Zoom's CEO Just Gave Away $6 Billion Worth of His Shares
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Eric Yuan, the CEO and founder of Zoom, a video-calling platform, recently transferred approximately 40% of his shares to anonymous people.
The shares assigned by the executive had a combined value of $6 billion (approximately 126,190,800 Mexican pesos as of March 10, 2021) at the close of the stock exchanges on Friday, March 5.
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This information was released through a government document, which did not specify the name of the recipients.
According to The Wall Street Journal, the transaction was recorded as two gifts of nearly 9 million shares each to unspecified recipients and from two trusts of which Yuan and his wife are co-trustees.
Following the news, the video-conferencing firm's shares rose 10.03% to $ 342.11 each on the NASDAQ on Tuesday, March 9.
The Chinese-born businessman founded the company in 2011. In a statement, a spokesperson for the platform commented that this decision was part of Yuan and his wife's estate plan.
The video communications company reported $882.5 million in its fourth quarter of 2021, compared to an estimate of $811.8 million by some analysts.
Image: Grace Rivera
Prior to this stock transaction, Yuan was Zoom's largest shareholder with a 15% stake in the value of the company and around 40% in the firm's voting power.