The Strategist

Jeff Bezos sells Amazon's shares for $ 1 billion


05/05/2017 - 14:41



Founder and Head of online retailer Amazon, billionaire Jeff Bezos, sold one million shares of the company at a price of approximately $ 935 to $ 950 per share, reports Bloomberg.



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At the moment, Bezos owns 79.9 million shares of Amazon, which is about 17% of the company, the agency said. At the end of 2015, Bezos owned 83 million shares.

In April, the businessman said in an interview with the agency that he is annually selling Amazon shares for $ 1 billion in order to invest in Blue Origin, a space company that he founded. The company offers tourists to go on a suborbital flight to a height of more than 100 kilometers. According to the Bloomberg Index Billionaires Index (BBI), Jeff Bezos ranks third in the list of the world's richest people with a fortune of $ 80.6 billion.

Amazon is one of the world's largest online retailers. In addition to the USA, the company operates in Canada, China, Brazil, Japan and European countries. Online store Amazon.com was launched in July 1995. In November 2015, Amazon opened its first "physical" bookstore in Seattle - Amazon Books.

At least five analysts polled by FactSet forecast Amazon's rate to climb higher than $ 1,000 per share. The highest target of $ 1,250, set by analyst Shyam Patil of Susquehanna Financial, will make Bezos the first person whose fortune will exceed $ 100 billion. Patil believes that this will become possible thanks to the company's capabilities in e-commerce and cloud technologies, as well as its investments in digital content and construction of order processing centers.

Earlier, Jeff Bezos announced that he would be ready to sell $ 1 billion in Amazon’s shares for the sake of saving his unprofitable aerospace company Blue Origin. The salvation consists in the construction of the New Glenn missile, presumably, reusable.

Amazon’s founder is going to invest $ 2.5 billion in the construction of a launch vehicle capable of delivering satellites and people into orbit. According to Reuters, the businessman plans to sell the company's shares for $ 1 billion annually for the sake of investments in Blue Origin.

In March 2017, the press reported that the French satellite communications operator Eutelsat announced signing of a contract with Blue Origin to launch a New Glenn missile by 2020 and sending a geostationary satellite into the orbit in 2021-2022.

The businessman is not going to limit himself with the satellites. At the XXXIII Space Symposium held in Colorado Springs, Jeff Bezos announced that he plans to organize 11 minutes-long suborbital passenger flights in the next year. "Everyone says that when you go out into space, it completely changes you. All cosmonauts, coming back, talk about this. It's great to see the Earth, the atmosphere", the USAToday quotes the businessman.

As USAToday’s journalists note, Jeff Bezos explained his intention to redistribute income from Amazon in favor of Blue Origin saying that the aerospace company should eventually "become profitable and self-sustaining". "The long-term goal is to lower the price of space flights so that millions of people can live and work outside the Earth", Bezos said. He is now the largest shareholder in Amazon, owning 80.9 million shares of the company.

source: reuters.com, bloomberg.com, usatoday.com