The Wall Street Journal is reporting that Google’s Executive Chairman Eric Schmidt is selling some of his Google stock to the tune of approximately $1.45 billion. This will reduce his ownership of Google from 2.8 percent to 2.1 percent.
A regulatory filing shows that Schmidt started the stock trading in November, and plans to sell up to 2.4 million shares. To avoid a market impact, the stock will be traded over a period of one year. As of Friday afternoon, Google’s stock has fallen 3.3 percent compared to one year ago. The stocks have, however, risen slightly over the last three months.
Schmidt had been Google’s chief executive for 10 years before co-founder Larry Page took over the job in April.
Is this a simple case of Schmidt diversifying his assets, or is he worried about the future market strength of Google? If he just making sure he doesn’t have all his eggs in one basket, why didn’t he do this before? Only time will tell how Google fairs in the global economy. Let us know your opinion in the comments.
source: The Wall Street Journal