Gates Foundation Sells $3.2B Microsoft Stake as Ackman Buys $2.3B
The Bill & Melinda Gates Foundation Trust divested its entire $3.2 billion Microsoft stake, triggering a 0.42% share decline to $422.07. The sale funds a target of $9 billion annual grantmaking by 2026 and endowment wind-down by 2045, while Pershing Square purchased 5.65 million shares (~$2.3 billion) at 21× forward earnings.
1. Gates Foundation Divestment
The Bill & Melinda Gates Foundation Trust completed a full divestment of its $3.2 billion Microsoft stake, a position it amassed through direct donations over the past three years. The sale coincided with a 0.42% share decline to $422.07, reflecting heightened market liquidity needs.
2. Grantmaking and Endowment Wind-Down
Proceeds will support a schedule to increase annual grantmaking to $9 billion by 2026 and ultimately wind down the endowment by 2045, guiding the foundation’s cash management strategy. Microsoft shares formed the largest concentrated holding, making them the first to be trimmed.
3. Pershing Square Purchase
Pershing Square Capital Management disclosed the acquisition of 5.65 million Microsoft shares, valuing the position at roughly $2.3 billion. With a cost basis of 21× forward earnings, the purchase signals a strategic bet on Microsoft’s AI-driven growth trajectory.