Founder of Zoom Eric Yuan transfers $6bn of his shares
Eric Yuan, founder of Zoom Video Communications Inc. has transferred about 18 million of his shares worth more than $6bn (£4.4bn).
Mr. Yuan, who is also chief executive of the video-conferencing platform, moved roughly 40% of his stake in the company last week.
According to a securities filing made late on Friday, the transaction was documented as two gifts of nearly 9 million shares apiece, to unspecified recipients and from two trusts for which Mr. Yuan and his wife are co-trustees.
Mr. Yuan’s wealth had seen an immense increase as Zoom became a household name during pandemic lockdowns.
A rising number of students and professionals connected online boosting the futures of Zoom and its founder.
Mr. Yuan started Zoom in 2011 and listed it on the US stock market in 2019, making him a billionaire. According to Forbes, he is currently worth $13.7bn.
“The distributions were made following the terms of Eric Yuan and his wife’s trusts,” a zoom spokesperson said. He also said the transfers were related to Mr. Yuan’s estate planning practices.
The company has a market valuation of around $100bn. Zoom’s shares have nearly tripled in the past 12 months. Mr. Yuan was named Time magazine’s Businessperson of the Year in December.
Edward Moya, at trading firm Oanda, told the BBC that the Zoom founder Eric Yuan’s decision to transfer more than a third of his stake will raise some eyebrows.
“While a Zoom spokesperson noted that the transfer is consistent with the Yuans’ typical estate planning practices, investors will be nervous until we find out who is the recipient of the stock,” he added.
Mr. Yuan said working from home will continue to stay even as lockdowns will ease and vaccines are rolled out across the world.
Zoom executives expect the growth to continue this year. It expects sales to rise more than 40% this year, reaching more than $3.7bn.
“The future is here with the rise of remote and work from anywhere change. We recognize this new reality, ” Mr. Yuan said.
