Stories
Slash Boxes
Comments

SoylentNews is people

posted by martyb on Tuesday November 19 2019, @08:01PM   Printer-friendly
from the getting-while-the-getting-is-good? dept.

Arthur T Knackerbracket has found the following story:

Uber's two co-founders have let go of some of the millions of shares they own in the ride-hailing company. Over the past two weeks, Travis Kalanick has sold more than 26 million shares, according to filings with the Securities and Exchange Commission. That's nearly 27% of his stake in Uber, worth nearly $705 million based on today's stock price. And to a lesser degree, Garrett Camp has sold 510,000 shares, worth roughly $13.6 million.

Uber investors and employees were first able to sell their shares in the company two weeks ago when its initial public offering lockup period ended. While many early investors said they'd hold onto their shares, others flooded the market, causing Uber's stock to hit record lows.

The company's shares haven't traded higher than $27 since then -- roughly 40% lower than Uber's IPO price of $45.

[...] It isn't clear why Kalanick and Camp sold some of their shares; neither returned a request for comment. But they both still own large stakes in the company. Uber had roughly 1.7 billion shares when it went public, according to SEC filings. Of those, Kalanick still owns more than 71 million shares and Camp owns more than 73 million. They also both sit on Uber's board of directors.

[...] After six months of scandals -- including a #DeleteUber movement, allegations of a chaotic corporate culture that OK'd sexual harassment and a lawsuit brought by Waymo claiming Uber stole its self-driving car tech -- Kalanick was forced to step down. Current Uber CEO Dara Khosrowshahi came on two months later in August 2017.


Original Submission

 
This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 4, Interesting) by PartTimeZombie on Tuesday November 19 2019, @10:21PM (2 children)

    by PartTimeZombie (4827) on Tuesday November 19 2019, @10:21PM (#922119)

    But even 27% is hardly 'cashing out'.

    If any of the founders look to sell 100% of their shares, (or even 75%) the share price will instantly drop to zero or near enough to make it not a good idea. They are definitely cashing out.

    Starting Score:    1  point
    Moderation   +2  
       Interesting=2, Total=2
    Extra 'Interesting' Modifier   0  
    Karma-Bonus Modifier   +1  

    Total Score:   4  
  • (Score: 0) by Anonymous Coward on Wednesday November 20 2019, @02:13PM (1 child)

    by Anonymous Coward on Wednesday November 20 2019, @02:13PM (#922359)

    Your premise makes no sense.

    First, you say "IF" they sell 100% of their stock, price = 0. Of course, that's not true. Depends on how much stock they own, how fast they sell it, market belief in the company, and 100 things more. People have sold their shares, and the company's stock barely has a blip!

    But OK.. there's SOME truth to what you say. Large stock sales CAN have a hit (not will, CAN!). OK.. so?

    Now one guy sells 27%. You instantly infer that this means 'cashing out', due to some unknown formula that I'm sure every trader in existence would love to know. And this number is no where near 100%.

    Further, the 'other guy' is selling a modest amount of shares. Yet because 'guy #1' is selling 27%, guy selling 10% is 'also cashing out', because if ONE founder sells 100%, they're "all caching out".

    Yet NO founder even sold 100%.

    Not sure where the logic flow is here.