Eric Schmidt to Sell Google Stake Worth $2.5 Billion
By Geetha Pillai | February 9, 2013 7:16 PM EST
Google Executive Chairman Eric Schmidt plans to sell nearly 42 percent of his stake in the company, according to a stock filing from Google with the US Securities and Exchange Commission.
Schmidt will be unwinding 3.2 million shares of Class A common stock through a stock trading plan which will be worth $2.5bn (£1.6bn, €1.9bn).
He owns about 7.6 million shares of Class A and Class B stock which accounts for 2.3 percent of Google's outstanding shares.
The sale will be spread over a year to avoid any impact on the company's share price. Google shares closed at $781.26, down $4.11 in after-hours trading on Friday.
Google said the stake sale will provide Schmidt "individual asset diversification and liquidity". However, no reason for Schmidt's decision was given.
"My speculation is that Eric's relationship with Google is evolving. I would assume that as he decides he wants to diversify away from Google - both his career and financially - he's got ideas of what he would like to do with some of his funds," Needham & Co analyst Kerry Rice told Reuters.
Schmidt stepped down as the chief executive of Google in April 2011, paving way for the co-founder of the company, Larry Page, to take the helm.
Schmidt made headlines recently with his visit to North Korea and remarks about China. He has called China the "most sophisticated and prolific" hacker of foreign companies in a soon-to-be published book entitled The New Digital Age.
To contact the editor, e-mail:
Most Popular Slideshows
- Kate Middleton Suffocated in Kensington Palace, Queen Elizabeth Reported War With The Duchess [PHOTOS]
- Chris Martin Dating Reports: Jennifer Lawrence Vs Gwyneth Paltrow [PHOTOS]
- 2014 MTV Video Music Awards: Everything To Know [PHOTOS]
- British Style Icon Kate Middleton Fashion Talk With Camilla Parker-Bowles Daughter-In-Law [PHOTOS]
Join the Conversation
- Muslim Leaders Refuse to Approve Tony Abbott’s Terrorism Law
- Russia Demands Ukraine Release Communications With Doomed Malaysia Airlines MH17, Preliminary Report On Investigations Out This Month
- Ebola Update: Liberian Forces Receive Shoot Orders Against People Trying to Cross from Sierra Leone Border
- Historic First Time: Catholic Pontiff Pope Francis Supports Military Intervention Against ISIS In Iraq
- Chinese Airlines Receives Lawsuit for Rejecting HIV-Positive Passengers
- 4.7-Inch, 5.5-Inch iPhone 6 Models Confirmed with Similar Build, Cam Features & 300+ Screen Pixels on Release Date
- Saudi Arabia: Brothers Beheaded For Smuggling Marijuana Into The Kingdom
- ISIS: More Journalists Beheading To Come After James Foley and Steven Sotloff [Video]
- Moto X+1 is Likely Nexus 6 Template; Motorola Shamu is 1st Android Silver with Snapdragon 810 – Reports
- James Foley: More Chilling Information Revealed By Escaped Journalists
- James Foley’s Executioner Has British Accent—A Chilling Reminder That ISIS Has Foreign Members
- Xiaomi Mi4 vs iPhone 6: Why Forecasts Favor Mi4 as The Next Best Phone Against iPhone 6