7 ms·

My guess is he was told to leave the board by the end of 2019 when he was ousted. Selling all of his stock was a way to get back at the board.

chrisabrams 7y ago
How does selling stock “get back” at the board?
- Waterluvian 7y ago
  My best guess would be: He exits his position in a way that can hurt the investment optics of Uber.
  - troydavis 7y ago
    > He exits his position in a way that can hurt the investment optics of Uber. He didn't do that, though. He exited his position predictably and without huge newsworthy sales. As usual, Levine puts it better than I can; from https://www.bloomberg.com/opinion/articles/2019-12-17/the-sec-is-asking-about-esg https://www.bloomberg.com/opinion/articles/2019-12-17/the-se...: > There is nothing particularly strange about this. At one point—basically before June 2017—Kalanick was the founder-CEO of Uber and owned an appropriate amount of stock for a founder-CEO, and now he is not the founder-CEO and is working his way down to an appropriate amount of stock for a non-founder-CEO. … > He has sold stock every day since the lockup expired. He has accounted for about 7.8% of Uber’s volume during that time
    - caseyf7 7y ago
      Great points, but it is highly unusual that someone in his situation would sell all of their stock so quickly. He probably couldn’t have sold it much faster.
- caseyf7 7y ago
  Increasing supply of the stock combined with the knowledge that the founder, who is an insider and large shareholder, is selling stock puts downward pressure on the price which makes the board look like they mishandled the situation.
hn_throwaway_99 7y ago
Sorry, but at this level people don't make multi billion dollar decisions for spite. Also, "told to leave the board" doesn't mean anything - he's either voted out or not. He was previously kicked out as CEO, someone else is in charge, and he obviously doesn't believe leaving his capital there is a good use of his money.
- samfisher83 7y ago
  I would think at his level it would be the opposite. He has FU money. They did kick him out of the company he made. Maybe he wants to tell Uber something.
  - caseyf7 7y ago
    Even his unborn grandchildren have FU money.
    - deleted 7y ago
      [deleted]
BubRoss 7y ago
I don't think most people would sell 3.5 billion dollars worth of stock haphazardly to temporarily spite a group of people a little bit. At %4 per year you can spend $380,000 every day for the rest of your life. There are probably better ways to get even and even better things to do with your time and freedom.
JMTQp8lwXL 7y ago
It doesn't really make sense for him to do this, if his reputation is to carry with him to Cloud Kitchens. People would be quite wary of future business dealings. If "getting back" at Uber is acceptable, he may decide to "get back" at Cloud Kitchens -- in other words, it sets a bad precedent.

chrisabrams 7y ago

How does selling stock “get back” at the board?

Waterluvian 7y ago
My best guess would be: He exits his position in a way that can hurt the investment optics of Uber.
- troydavis 7y ago
  > He exits his position in a way that can hurt the investment optics of Uber. He didn't do that, though. He exited his position predictably and without huge newsworthy sales. As usual, Levine puts it better than I can; from https://www.bloomberg.com/opinion/articles/2019-12-17/the-sec-is-asking-about-esg https://www.bloomberg.com/opinion/articles/2019-12-17/the-se...: > There is nothing particularly strange about this. At one point—basically before June 2017—Kalanick was the founder-CEO of Uber and owned an appropriate amount of stock for a founder-CEO, and now he is not the founder-CEO and is working his way down to an appropriate amount of stock for a non-founder-CEO. … > He has sold stock every day since the lockup expired. He has accounted for about 7.8% of Uber’s volume during that time
  - caseyf7 7y ago
    Great points, but it is highly unusual that someone in his situation would sell all of their stock so quickly. He probably couldn’t have sold it much faster.
caseyf7 7y ago
Increasing supply of the stock combined with the knowledge that the founder, who is an insider and large shareholder, is selling stock puts downward pressure on the price which makes the board look like they mishandled the situation.

hn_throwaway_99 7y ago

Sorry, but at this level people don't make multi billion dollar decisions for spite. Also, "told to leave the board" doesn't mean anything - he's either voted out or not. He was previously kicked out as CEO, someone else is in charge, and he obviously doesn't believe leaving his capital there is a good use of his money.

samfisher83 7y ago
I would think at his level it would be the opposite. He has FU money. They did kick him out of the company he made. Maybe he wants to tell Uber something.
- caseyf7 7y ago
  Even his unborn grandchildren have FU money.
  - deleted 7y ago
    [deleted]

BubRoss 7y ago

I don't think most people would sell 3.5 billion dollars worth of stock haphazardly to temporarily spite a group of people a little bit. At %4 per year you can spend $380,000 every day for the rest of your life. There are probably better ways to get even and even better things to do with your time and freedom.

JMTQp8lwXL 7y ago

It doesn't really make sense for him to do this, if his reputation is to carry with him to Cloud Kitchens. People would be quite wary of future business dealings. If "getting back" at Uber is acceptable, he may decide to "get back" at Cloud Kitchens -- in other words, it sets a bad precedent.