As CCN has reported, Jeff and MacKenzie Bezos are officially divorcing. Whether or not the divorce is the result of a months-long affair with Lauren Sanchez has not been confirmed. What we do know is that unless they change their minds, Amazon shareholders have cause for concern.
MacKenzie Bezos Likely to Have Restrictions on AMZN Holdings
Several analysts had predicted a bullish 2019 for Amazon, with price targets indicating gains as high as 20 percent. Will that change now that the CEO’s personal troubles have come to light?
According to Business Insider, the assets will most likely be structured in a way that prevents immediate dumping from MacKenzie. Washington State, where they will likely file the divorce, doesn’t strictly require that MacKenzie will get half of Jeff’s assets. Nevertheless, any reasonably good divorce attorney can ensure she gets enough to matter.
Legal experts told Business Insider that the structure of the divorce would most likely not force the liquidation of Amazon shares.
Three Scenarios for Amazon’s New Top Investor
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.
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.