In a recent financial move, Jeff Bezos, the renowned entrepreneur and executive chair of Amazon, has made significant divestments by selling more than $4 billion worth of Amazon shares in the past few days. The tech giant, founded by Bezos in 1994, confirmed that he has sold a total of 24 million Amazon shares this month alone. This follows the company's earlier announcement that Bezos plans to sell a staggering 50 million shares over the next year, currently valued at around $8.4 billion.
This recent stock sale marks Bezos' first since 2021. The initial announcement of the divestment, involving 12 million shares, was made through a regulatory filing on a Friday, followed by another announcement on Tuesday regarding the sale of an additional 12 million shares. Bezos, known for his philanthropic efforts, has previously given away Amazon shares as part of his charitable contributions, with the most recent instance occurring in 2022.
A notable aspect of Bezos' financial strategy is his relocation from Seattle, Washington, to Miami, Florida, last year. This move is expected to save him approximately $280 million in taxes on the $4 billion worth of stock he has recently sold. Washington imposes a 7% tax on gains above $250,000 from the sale of shares or other long-term investments, whereas Florida does not have state taxes on incomes or capital gains. Despite this, Bezos will still be subject to federal taxes resulting from the sale of the shares.
The decision to move to Florida has fueled speculation about Bezos' motivations, with some suggesting it may be related to potential tax implications in Washington after the state approved a new tax on large stock sales. Bezos, in a statement made in November, cited his desire to be close to family, particularly his parents who had relocated to Miami. He also expressed the intention to be near his Blue Origin space project, which is progressively shifting its focus to Cape Canaveral.
Even with the recent divestments, Jeff Bezos remains Amazon's largest shareholder and one of the wealthiest individuals globally, boasting an estimated fortune exceeding $190 billion. The decision to sell shares comes amid a remarkable 70% surge in Amazon's stock value over the past year.
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