Business

Zoom founder transfers US$6 bil shares to undisclosed recipients

Transaction amounts to 40% of Eric Yuan’s stake in company

Updated 5 years ago · Published on 10 Mar 2021 11:00AM

Zoom founder transfers US$6 bil shares to undisclosed recipients
Founded in 2011, Zoom became popular during the Covid-19 pandemic that resulted in increased demand for online conferences. – March 10, 2021

MOSCOW – Founder of United States-based Zoom Video Communications Eric Yuan has transferred roughly US$6 billion (RM24.7 billion, or 40%) of his stake in the company to undisclosed recipients after Zoom’s shares skyrocketed last year, Sputnik quoted a The Wall Street Journal report yesterday, citing the company’s documents.

According to the news outlet, the transaction was registered as two gifts to undisclosed recipients from two trusts controlled by Yuan and his wife.

A Zoom spokesman said the shares were transferred in compliance with the trusts’ terms, adding that such distributions were not unique for Yuan.

“The distributions were made in accordance with the terms of Eric Yuan and his wife’s trusts, and are consistent with the Yuans’ typical estate planning practices,” said the spokesman, as quoted by the newspaper.

According to InsiderScore analytical firm, Yuan was Zoom’s largest shareholder and possessed a 15% stake in the company before the transaction that amounted to roughly 6% of Zoom’s shares.

Founded in 2011, Zoom became highly popular during the Covid-19 pandemic that resulted in increased demand for online conferences.

In March last year, over 300 million users used the conferencing programme daily, compared with 10 million in December, 2019. In early last year, Zoom’s shares were assessed at US$67.28 a piece, but reached US$559 a piece on October 16. – Bernama, March 10, 2021

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