Amazon founder and the world's fourth richest person, Jeff Bezos, sold 3.4 million Amazon shares worth £568.85 million ($768.9 million) based on the Thursday closing price of £164.43 ($222.26) per share. The stock sale was completed between 3rd and 9th July across four trades, according to the latest filings with the US Securities and Exchange Commission.
The financial changes took place a week after he married Lauren Sanchez, which was a three-day extravaganza in Venice costing an estimated £36.99 million ($50 million). Furthermore, Bezos also sold over £517.87 million ($700 million) of Amazon shares in June. However, he still holds over 901 million shares of the company worth over £147.96 billion ($200 billion), retaining his position as the largest shareholder with a 9% stake. Bezos has a net worth of £179.77 billion ($243 billion), according to the Bloomberg Billionaires Index.
The massive trades were made under a 10b5-1 plan, representing agreements between corporate insiders and brokers on conditions under which company stock is to be purchased or sold. This plan is employed to avoid accusations of insider trading and is often disclosed months before transactions.
The timing of the stock sale and Bezos' marriage have experts speculating that the drastic investment move was related to an iron-clad prenuptial agreement he reportedly signed with Sanchez right before their marriage last month.
Bezos lost a significant part of his fortune after his divorce from his first wife, MacKenzie Scott, in 2019. The marriage was without a prenup, and Bezos had to transfer a quarter of his then 16% Amazon stake to her. Scott is said to have received $38 billion under a divorce settlement.
Although details of the prenup with Sanchez are yet to be confirmed, Walzer Melcher & Yoda partner Christopher Melcher told Fox News that Bezos signed a prenup to protect his children with Scott.
'Bezos handled his first divorce as fast as an Amazon delivery,' Melcher said. 'It was quick but not painless. Billions of dollars were at stake, which were earned during marriage and had to be split because there was no premarital agreement.'
'For Bezos, his enormous wealth will allow him to be generous in his marriage with Lauren. He has enough money to provide for his existing children, to make charitable donations, while also creating a strong community estate with Lauren,' Melcher added.
He explained that Bezos has children and other uses for his wealth, which creates a valid requirement to create some guardrails around his 'premarital estate,' and can be done while creating a partnership with Lauren.
'For example, there could be a large upfront payment at the date of marriage, like a signing bonus, or a large payment on separation, like a severance,' he added.
According to California attorney Alphonse Provinziano, the prenup includes detailed documentation of Bezos' business interests, stock portfolio, and potential liabilities, ensuring there are no legal grey areas in case of a future dispute, minimising the scope for prolonged court battles.
Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.
