[Super Rich] Google Founder Sold Tesla Shares After Musk's Betrayal

Sergey Brin Establishes Nonprofit Foundation for Climate Change Response
Angry at Musk's Affair with Wife, Sells Tesla Shares
Uses Tesla Sale Proceeds to Found 'Catalyst4'

Editor's Note'Stand on the shoulders of giants.' This is one of the widely known investment adages. By paying attention to the eyes and mouths of the super-rich, you can see the direction of money. We deliver everything interesting about the investment trends, words, interests, and movements of the big players who move the global markets. We also deliver news that would interest investors who are currently salaried workers but dream of financial freedom. Please pay attention to the Super Rich corner, which contains vivid global investment news.

Sergey Brin, co-founder of Google and the world's 10th richest person, sold nearly 500 billion KRW worth of Tesla shares, a company founded by Elon Musk, who was once his 'close friend' and ex-wife's inappropriate partner. The proceeds from the Tesla stock sale will be used to establish a nonprofit foundation for health and climate change response.

On the 23rd (local time), Bloomberg reported that an analysis of documents submitted to the U.S. Internal Revenue Service by Catalyst4 revealed that the foundation sold approximately $366 million (about 490 billion KRW) worth of Tesla shares over four days starting December 14, 2021.

Catalyst4 is a nonprofit foundation being established by Brin, who covered most of the $500 million (about 670 billion KRW) needed to set up the foundation with the proceeds from the Tesla stock sale. The foundation plans to support treatments for neurological diseases and disabilities and to research climate change measures.

Bloomberg focused on the timing of Brin's Tesla stock sale. Coincidentally, Brin sold a large amount of Tesla shares when allegations of an affair between his ex-wife Nicole Shanahan and Musk surfaced. According to a past Wall Street Journal (WSJ) report, when suspicions arose about an inappropriate relationship between Brin's ex-wife and Musk, Brin requested his advisors to sell Tesla shares in July 2021. Musk denied the affair allegations, but Brin filed for divorce from Shanahan in January 2022.

Especially since Musk was close enough to regularly stay overnight at Brin's Silicon Valley home, and Brin had once readily given Musk $500,000 (about 670 million KRW) during the 2008 global financial crisis when Musk was struggling, Musk's 'betrayal' drew frowns from observers. Bloomberg pointed out, "The timing of the Tesla stock sale was around when a clear rift emerged between Brin and Musk, the automotive company founder."

However, Brin's timing of the stock sale was impeccable. Bloomberg noted that he cashed out near the peak by selling shares at the end of 2021 when Tesla surpassed $1,000, achieving 'Thousand Tesla.'

The total assets of Catalyst4, which Brin is establishing, amounted to $469 million (about 630 billion KRW) as of the end of 2021. While Catalyst4 sold Tesla shares, it continues to hold $78 million (about 100 billion KRW) worth of Alphabet shares, Google's parent company.

Bloomberg forecasted that through Catalyst4, Brin could engage in powerful philanthropic activities by securing political influence along with tax benefits. The U.S. offers tax exemption or reduction benefits to two types of nonprofit organizations: 501(c)(3) and 501(c)(4). Catalyst4 falls under the 501(c)(4) category, which requires donors to pay taxes at a lower rate but allows unlimited lobbying.

Meanwhile, Brin ranks as the world's 10th richest person with a net worth of $93 billion (about 124 trillion KRW) according to the Bloomberg Billionaires Index. Once close, he now stands somewhat above half the net worth of Musk, the world's 2nd richest person with $165 billion (about 220 trillion KRW), who has turned his back on him. Brin is known to have donated mainly to research on degenerative diseases such as Parkinson's disease, contributing a total of $1.1 billion (about 1.47 trillion KRW) to related fields up to last year.

This content was produced with the assistance of AI translation services.