Google executive chairman Eric Schmidt will be selling two-fifths of his stake in the company in exchange for a significant amount of cash. The former CEO will earn around $2.51 billion from the transaction, the intention for which was filed with the Securities and Exchange Commission after hours on Friday.
The filing tells that he will be selling approximately 3.2 million Class A common stock, leaving him with 4.4 million shares. A Google spokesperson speaking to the Wall Street Journal called the share sale “part of his long-term strategy for individual asset diversification and liquidity,” as well as affirming Schmidt’s commitment to Google. A similar rationale was behind an identical sale by Schmidt one year ago, where 2.4 million shares worth around $1.45 billion were sold in order to diversify his holdings.
After the shares are sold, Schmidt will still own around 1.3-percent of Google. Schmidt is currently positioned at number 138 in Forbes’ list of billionaires, and is said to have a net worth valued at $7.5 billion.
