Yahoo Inc. co-founders Jerry Yang and David Filo are planning to sell up to five million shares of their Internet search company in the upcoming 15 months, according to a regulatory filing submitted to the Securities and Exchange Commission Thursday.
Three million shares were transferred by Yang into a blind trust managed by a third-party trustee in February. The trustee is slated to make decisions on the rate at which the shares will be sold off, according to the filing. The trust is scheduled to empty by the close of the year.
Meanwhile, Filo devised a strategy to sell off as many as two million shares of the company by May of 2011. Filo’s shares will be sold in accordance to market prices over the course of a one-year period beginning in May of 2010.
The measure selling off of stocks by Yang and Filo demonstrates the companies compliance with Rule 10b5-1 of the Securities Exchange Act of 1934 and is designed to avoid charges of insider trading.
In the hours that followed, shares of Yahoo tacked on 42 cents, or 2.8 percent, hitting $15.22 at close on Thursday.
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