Jeff Bezos, the renowned entrepreneur and founder of Amazon, has recently divested a significant portion of his shares in the company, totaling over $4 billion (£3.2 billion) in recent transactions.
This tech titan, established by Mr. Bezos in 1994, disclosed the sale of 24 million Amazon shares this month. Notably, this marks his first sale of Amazon shares since 2021.
Earlier in the month, Amazon announced Mr. Bezos’s intention to sell 50 million shares over the coming year, amounting to approximately $8.4 billion at current market rates. The initial sale of 12 million shares was reported in a regulatory filing last Friday, followed by another 12 million shares announced on Tuesday.
In addition to selling shares, Mr. Bezos has also contributed shares to Amazon as part of his philanthropic endeavors, with the most recent instance occurring in 2022.
Mr. Bezos’ relocation from Seattle, Washington to Miami, Florida last year is estimated to result in tax savings of approximately $280 million on the $4 billion worth of stock he has divested.
Notably, Washington state imposes a 7% tax on gains above $250,000 from the sale of shares or other long-term investments, while Florida does not impose state taxes on incomes or capital gains. However, Mr. Bezos remains subject to federal taxes on the proceeds from the share sales.
Speculation arose regarding Mr. Bezos’s relocation to Florida, with some suggesting it was motivated by potential tax liabilities in Washington following the state’s approval of a new tax on large stock sales.
The divestment of Amazon shares comes amid a significant rise in their value, with shares increasing by nearly 70% over the past year.
Mr. Bezos cited personal reasons for his move to Miami, including his desire to be close to family and his Blue Origin space project, which has been increasingly centered around Cape Canaveral.
In an Instagram post, Mr. Bezos expressed his affection for Miami and announced his decision to relocate, emphasizing his intention to be closer to family and his ongoing projects.
Despite divesting a portion of his shares, Mr. Bezos remains Amazon’s largest shareholder and one of the wealthiest individuals globally, with an estimated fortune exceeding $190 billion.