Left Menu
Development News Edition

UPDATE 1-Overstock CEO defends personal stock sale after shareholders question move

Reuters | Updated: 18-05-2019 00:51 IST | Created: 17-05-2019 19:28 IST
UPDATE 1-Overstock CEO defends personal stock sale after shareholders question move
Image Credit: Pixabay

Overstock.com Inc Chief Executive Officer Patrick Byrne on Friday hit out at shareholders who questioned the sale of a portion of his stake in the company after the online retailer's shares plunged on Wednesday following the disclosure of his move.

Shares of the company, which offers a range of lower-priced luxury goods, fell about 16% on Wednesday after a filing revealed that Byrne, Overstock's largest shareholder, had sold about 500,000 of his shares, or 9% of his stake. Byrne revealed on Friday that he had sold a total of about 900,000 of his shares, or 15.5%, which had created "an unanticipated stir" among the company's shareholders.

Byrne, in a letter to shareholders, said people who he had never heard of were demanding answers regarding the timing, reasoning and purpose of the sale. "Not once have I ever asked a shareholder for his reasons in any decision he made. Yet, given the consternation this has caused, I will give an answer, to preclude further recurrence of mass vapours," Byrne said.

Byrne said that he told shareholders a year ago that he would make "significant sales" of his shares to fund different projects, including blockchain investments and to supplement his nominal salary of $100,000 annually. "I do not intend to ever give such an explanation again. I owe shareholders staying within the law and not making decisions based on inside information," Byrne said.

Byrne had previously pledged about 1.9 million of his 5.8 million shares he owned prior to this week's sale as collateral for credit from banks. Overstock's shares, which are up 3% in morning trading on Friday, have fallen about 89% from its record high in January 2018, when the company was benefiting from its plan to launch a digital token and from the hype around cryptocurrencies.



‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Dissecting how COVID-19 is catalyzing the trajectory of New World Order

The ensuing pandemic of COVID-19 has hit the globalization in two ways firstly, shrinking the importance of globalization as an economic force by curtailing mobility through worldwide lockdowns, and secondly, rejuvenating the idea of indig...


Latest News

Sports News Roundup: Players Association seeking 'certainty'; McIlroy on postponing Ryder Cup

Following is a summary of current sports news briefs.Players Association seeking certainty before returnNational Basketball Players Association executive director Michele Roberts told ESPN on Tuesday that players are seeking a level of cert...

Airbus experts from France begin probe into Pak air crash

An 11-member team of technical experts of Airbus aerospace company visited the Jinnah International Airport here and inspected the runway, air traffic control tower and radar control station as part of its initial investigation into the PIA...


We are entering the age of large pandemics this is not the last pandemic we are seeing Health expert Ashish Jha to Rahul Gandhi....

Reuters Science News Summary

Following is a summary of current science news briefs. Virgin Orbit fails first rocket launch attempt from modified planeRichard Bransons Virgin Orbit company aborted its first attempt to launch a rocket into space from the belly of a 747 a...

Give Feedback