YouTube Founders Selling $326 Million in Google Shares
Wednesday, February 7th, 2007;
-- Andy Beal |
Bloomberg is reporting that YouTube co-founders Chad Hurley and Steve Chen have registered to sell 3.23 million shares of Google stock.
Hurley and Chen, who founded YouTube in February 2005, may each sell shares worth about $326.2 million as of today’s closing price. Sequoia Capital, YouTube’s largest investor, may sell shares worth $504.4 million.
Others investors included in the filing include:
- Sequoia Capital (worth $504.4 million)
- Artis Capital Management LLC ($83 million)
- Jawed Karim (another YouTube founder; $64.6 million)
The rest of YouTube’s employees will have to wait until vesting before they get to cash out.
What does this say about the future of YouTube? You can’t blame the guys for cashing-out, but it’s hardly a vote of confidence.
Hat-tip to Pete.
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February 7th, 2007 at 9:49 pm
Wouldn’t it say more about Google and not necessarily YouTube? Since it is Google stock and all.
Not a bad payday though.
February 7th, 2007 at 10:01 pm
Very true. But if you’re maybe planning to leave YouTube, you’d probably want to cash-out first.
February 8th, 2007 at 5:54 am
And that is the same thing people said when all the Google employees sold their stock and the price has only risen since then. Maybe they just want the cash?
February 8th, 2007 at 8:22 am
I think it would be idiotic for them not to sell a huge portion of their stock. It has nothing to do with their confidence in Google, it just isn’t smart to have that much money wrapped up in one company.
February 8th, 2007 at 10:15 am
Maybe they just need some money for a downpayment on a house in the valley
February 8th, 2007 at 5:15 pm
It makes sense from a few standpoints. If I had $300 million tied up in one stock, I would diversify in a hurry. Plus you have to figure that their 2007 tax bill is going to be ENORMOUS, so they would have to sell a large amount of stock anyway just to pay Uncle Sam. Lastly, I’d want to hafe some fun with some of it!
September 20th, 2007 at 3:59 pm
Good move to get part of the money to invest in other projects.