Jobs’ family to get along fine without selling stock
Recently, financial advisors have fallen from the sky to proclaim Lauren Powell Jobs should sell many if not all of the shares Steve Jobs left his family in order to minimize any payable taxes. However, there’s more to life than avoiding taxes and clear value in holding onto to those AAPL an DIS shares.
When Steve Jobs passed away on October 5, he not only shed his mortal coil but also left behind 5.426 million Apple (AAPL) and 138 million Disney (DIS) shares. The disposition of these holdings has been the source of financial analyst fodder ever since.
Thereupon, we know what will happen to his 7.7 percent stake, worth an estimated $4.6 billion, in Disney will be held in a trust Yahoo Finance (AP) to be managed by his widow Laurene Powell Jobs.
Steve Jobs acquired his stake in Disney in 2006 when that company purchased Pixar, which the Apple cofounder bought from George Lucas for $10 million in 1986. Even including the $50 million Jobs sunk into the groundbreaking animation house, that’s quite a return on investment.
No need to sell now…
Thereupon, you needn’t be concerned Jobs’ family won’t be able to get along without selling some of the DIS shares held in trust.
For example, if Disney pays a $0.40 divident, like it did in 2010, Laurene Jobs et al will collect $55.2 million without lifting a finger, relatively speaking.
As of this writing unknowns include what Powell Jobs will do with the 5.426 million AAPL shares she now owns — Apple doesn’t pay dividends. Additionally, the question of Steve Jobs’ Disney board of directors seat remains unanswered.
Should Mrs. Jobs, who worked in finance before marrying, take her husband’s spot on the board? That would be a very interesting wrinkle…
What’s your take?
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