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Comment by dkyc | Hacker News Reader

This is complete nonsense. He sold about $23m worth of stock [1], while he owned about 22% of stock at the time of IPO, worth roughly ~$10b in total.

[1] https://www.gurufocus.com/news/1135874/zoom-video-communicat...

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Came here to say this. He started with 0 shares of class A stock, and ends with 0 shares of class A stock.

What he did do is convert $23m worth of class B stock into class A stock, and sell it.

Adding up all the class B stock & options he holds at the end of the transaction (Table II, column 9), he still holds ~50M shares (worth ~$165 a pop as of this writing).

Even though the title is wack I just want to thank the original poster for inadvertently causing me to learn how to interpret SEC Form 4.

> he still holds ~50M shares (worth ~$165 a pop as of this writing).

I don't understand people like this. What could you possibly do with all that money? Just sell and retire.

You assume becoming a billionaire is the endgame here.

Is there any way to edit the HN post title to be more accurate?

"Zoom CEO sold $24m worth of stock" is still a pretty compelling headline.

How about "Zoom CEO sold 0.5% of his stock", which would be just as accurate but less compelling. He sold $24m, still has roughly 4 billion.

The best synthesis would be something like:

"Zoom CEO sells $24M from his $10B Zoom stake"

The current headline, "Zoom CEO sold all of his common shares", is technically correct but highly misleading – but's it's still interesting to see what a founder on a rocketship is doing to diversify a little, even in the particulars of the conversion/disclosure & how it's (mis-)interpreted by peanut galleries everywhere.

Just flag it. I really don't think your proposed headline would have gotten any traction here and would have immediately dropped off the front page.

> I really don't think your proposed headline would have gotten any traction here

That's OK with me.

Good point. Also, the title violates HN guidelines.

> "Zoom CEO sold $24m worth of stock" is still a pretty compelling headline.

Is it? That's like a quarter percent of his holdings.

> That's like a quarter percent of his holdings.

my calc says 0.025%

$24M sale / $10B holdings * 100

If he has stock worth $10 billion, it's insignificant.

I guess. I don't know how much of that $10b is readily liquid. If we really want to look at it in percentage terms it seems like that number is the one to compare to.

Frankly it seems reasonable to me to sell off some shares to "lock in" some of the gains; I'm not sure that shows a lack of confidence going forward.

Besides, there's a lot of reasons to sell shares. Maybe he's buying a house.

I see an X against 10% Owner. which means of the market cap of 46 billion Eric Yuan should own at the least $4.6 billion worth of shares. the current sale is noise (0.005 % of his shares. )

The very last line item on Table 1 shows 0 shares owned after his final sale.

That's some artifact of the form or the reporting requirements.

Per their Mar 20 2020 10k [1], Eric holds

> As of January 31, 2020, our founder, President and Chief Executive Officer, Eric S. Yuan, together with his affiliates, held approximately 16.5% of our outstanding capital stock

[1] https://investors.zoom.us/static-files/09a01665-5f33-4007-8e...

The first line implies 0 owned before, because he acquired X and now owns X afterward.

That’s class A shares. He got those by converting some of his class B shares.

See footnote 18 on the table.

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