VC Ram Shriram Offloads Google’s Shares For $ 31 Million

One of the first investors in search giant’s Google IPO debut, Ram Shriram has unloaded quite a few shares & made a bundle of money. The husband wife duo, who jointly holds the stocks, sold about 42,000 shares, each valued at US$ 730. They have managed to earn a total sum value of US$ 31 million, all within the last month.

The news about Google taking a agreeable stand & was about to close a three year long probe conducted by the European Union (EU) over alleged anti-competitive behavior, rocketed its shares to an all-time high of US$ 776.70. Though Shriram could have timed the sale to within a few dollars of this figure, the investor has setup a pre-marked trading plan called as 10b5-1. This plan mandates share trading based on pre-set conditions, Shriram apparently believes in trading shares in round-figures & not fractions.  Though he traded at US$ 730, his wife sold equal number of shares at a higher US$ 760.

Any particular reason for Google’s share-climb?

The EU had earlier accused the search giant of antitrust because a good many companies complained about the way the search engine arranged the ‘search results’. The ranking of the actual service providers & Google’s own cleverly inserted advertisements was viewed as anti-competitive, non-transparent & needless to say, biased. From the very beginning, Google had been jostling for a settlement rather than a full-on investigation. Google was being threatened with a fine of up to 10% of its global revenue, or about US$ 4 Billion, if the commission found it had violated European antitrust laws. However, Google seems to have dodged the bullet & appears to have make peace with EU.

Despite the sale, Shriram still holds over 150,000 shares, which, by today’s valuation sit at US$ 114 Million. This man with the firm grasp about the tech companies had held about 2.2% of Google (about 5 Million Shares). He was even a founding member of Junglee, which was quite recently inducted in the Amazon’s team.

With EU making peace with Google, is it India’s turn now?

Image Courtesy |  telegraph.co.uk & wired.com

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