Zoom Video Communications Inc. founder Eric Yuan transferred roughly 40% of his ownership in the company he runs, a stake valued at about $6 billion, after Zoom’s shares more than tripled last year.
The transaction was recorded as two gifts of nearly 9 million shares apiece, to unspecified recipients and from two trusts for which Mr. Yuan and his wife are co-trustees, according to a securities filing made late on Friday.
In a statement, a Zoom spokeswoman said “the distributions were made in accordance with the terms of Eric Yuan and his wife’s trusts, and are consistent with the Yuans’s typical estate planning practices.” The company didn’t say who now controls the shares. Mr. Yuan and his wife didn’t immediately respond to requests for comment.
Mr. Yuan was the company’s biggest shareholder with a 15% stake in the value of the company and about 40% of the company’s voting power before last week’s transactions, according to InsiderScore, which analyzes stock transactions by corporate insiders. The gifts amounted to about 6% of the company’s shares outstanding, InsiderScore said.
The Covid-19 pandemic turned Zoom’s video-meeting service into a household name and the company into an investor darling. The company’s success landed the 51-year-old entrepreneur on the Forbes magazine list of billionaires, and he was named Time magazine’s Businessperson of the Year in December.