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Google chairman sells up to $1.45b in stock to diversify

updated 12:55 pm EST, Sat February 18, 2012

Google's Eric Schmidt sells large stock amount

Google through an SEC filing on Friday revealed that its chairman Eric Schmidt intended to sell a large if minority portion of his stock. The plan would see him sell as much as 2.4 million of 9.1 million total shares, which at the $604.64 closing price would net slightly over $1.45 billion. The swap will leave him with about 6.7 million shares, or enough to still represent 2.1 percent of Google's entire share base and 7.3 percent of the voting power.

The decision to sell was explained as part of a long-term plan by Schmidt to guarantee "individual asset diversification and liquidity," or to both reduce his dependence on Google stock and give him more tangible funds. Where any new investments were going wasn't mentioned in the filing, although Schmidt will have to disclose his trading through his nature as an executive.

A sale wouldn't arrive at peak performance of the stock, but it would come at a relatively strong point and before possible tumult in Google's value. It has received approval for buying Motorola in key countries, but has yet to formally close the deal and start reflecting this in its structure. Schmidt might also benefit from selling before the post-seasonal slump that affects most companies, even though it's not as vulnerable to the holiday slump as rivals in the mobile world.

Neither Google nor Schmidt has formally commented on the share change. [via Wall Street Journal]

by MacNN Staff





  1. facebook_Charlie

    Via Facebook

    Joined: Feb 2012


    Tax Laws

    Maybe it is the new tax laws? He wants to make sure he does not get redistributed in 2013.

  1. Jubeikiwagami

    Joined: Dec 1969



    Maybe its for court and bail money? lol

  1. Bobfozz

    Joined: Dec 1969


    Schmidt "knows...

    Google is in for a rough ride.

  1. DaJoNel

    Joined: Dec 1969


    Yeah right

    He's selling because he knows his company is in the sh*tter and he's gonna save himself. Selling our privacy with the new terms, Android, Chrome (steals our information, too), and more. What does Google have anymore? Search? Bing.

  1. Flyingjoe

    Joined: Dec 1969


    It sure locks out the rest of the board and senior

    If any one else on the board or among the top staff wanted to avoid changes in the tax law or realize that this might be the best moment to sell - too bad for them, because they can't afford to have anyone else do so, or it implies a lack of confidence and THEN what would happen to their stock... Nothing good.

  1. Jeronimo2000

    Joined: Dec 1969


    "... to diversify"

    What that means, you ask? Well, he's selling his Google shares to buy Apple shares. The ride's only just beginning. :)

  1. glideslope

    Joined: Dec 1969


    RE: " diversify"

    Oh yea. No doubt. Maybe this is a way to release some of the Guilt from his days stealing ideas while on Apples Board, and betraying Steve's trust?

    Na, probably just wants to get off the sinking ship.

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