Why should Amazon investors be worried about Jeff Bezos’ divorce

As we all know, Jeff and MacKenzie Bezos are officially divorcing. The divorce announcement this month has been a boon for the gossip pages. This divorce will make Mrs. Bezos the world’s wealthiest woman if she takes half of her husband’s $US137 billion fortune.

MacKenzie’s shares could go one of three ways. In one scenario, she’s free to do as she pleases with them. Importantly, if she were to act irresponsibly, other investors could sue her. In another scenario, she gets millions of shares but has a specific schedule on which she can sell them. In yet another scenario, she gets half of Bezos’ shares, but Jeff retains voting rights associated with such shares.

Advertisement
iframe tag of video

Insert anoher article:

Read more similar articles

January 26, 2019

Xiaomi Presents the World a fold-in-three Smartphone

Advertisement

Speaking of voting rights, Amazon is structured the old-fashioned way: one share, one vote. While Jeff Bezos has the largest single holding at present, cutting his shares in half puts him and MacKenzie just a little ahead of other major holders. Two of the largest holders of Amazon stock are BlackRock and Vanguard. So far they have held their breath and made no public statements on Jeff Bezos’ divorce.

Advertisement

Under Washington state law, unless there is a prenuptial agreement, property acquired during a marriage is usually equally divided in the event of a divorce, said Carol Bailey, managing partner at Integrative Family Law in Seattle.

Advertisement

So what the divorce means is uncertainty, which certainly will have an effect on funds and retail investors deciding between AMZN and other quality bets. So far people seem to be keeping their money with the company. But the chaotic process of divorce has only just begun.

Advertisement
FOUNDER & HEAD

Your email address will not be published. Required fields are marked *

KNine Vox is an emerging news/media website, we cover a vast category of topics whether it is technology, sports or entertainment, we cover it all!. With every article, we try to provide our readers with an immersive experience which not only entertains them but also educate them.

More Stories
samsung galaxy note 20
Samsung Galaxy Note 20 launched, along with Galaxy Z Fold 2: Unpacked Event
Enable Notifications.    Ok No thanks