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Zoom's CEO Just Gave Away $6 Billion Worth of His Shares

A spokesperson for the company said that the decision was part of Eric Yuan and his wife's estate plan.

This article was translated from our Spanish edition. Opinions expressed by Entrepreneur contributors are their own.

Eric Yuan, the CEO and founder of Zoom, a video-calling platform, recently transferred approximately 40% of his shares to anonymous people.

Eric S. Yuan vía Twitter/Depositphotos.com

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.

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.