Zip co-founder Larry Diamond sells $100 million worth of shares after resignation

The co-founder of Zip Co, Larry Diamond, has parted ways with $100 million worth of shares after stepping down from the company.

Larry Diamond, co-founder of the Australian buy now, pay later company Zip Co, yesterday sold $100m of his shares in the company, following his resignation as director and US Chairman.

It is understood that Diamond sold a significant portion of his 55 million shares yesterday morning at market open. According to the AFR, Diamond parted with 30 million shares at $3.35, netting him close to $100 million.

In a statement to the ASX, Diamond said, “Now is the right time for me to step back from my day-to-day role at Zip.”

“I’m very proud of what Zip has achieved and have total confidence in the team that will be leading the company to continued great success. I remain a committed shareholder and supporter of Zip and the team.”

Zip Co CEO Larry Diamond and co-founder Peter Gray. Picture: Zip

Diamond owned around 4.7 per cent of Zip Co prior to yesterday’s trade. He still owns around 25 million shares.

After a sharp drop in morning trading yesterday, following the news of Diamond’s departure, Zip CEO and Managing Director, Cynthia Scott reassured shareholders that the business was prepared for the change.

“Larry has been an inspirational leader at Zip and has made an enormous contribution in our sector,” Scott said.

“He has prepared the team well for this natural progression and is stepping down at a time when we have the leadership and broader team executing strongly on a strategy that is delivering for the company and its shareholders.”

The value of Zip stock has skyrocketed by over 700 per cent this year. Last December, shares were being traded for just 40 cents. The company’s share price hit its peak in early 2021 at $12.35, thriving in an era of low interest rates. However the RBA’s 12 consecutive rate hikes saw the price of Zip stock tank in 2022.

Zip (ZIP: AU) share price over the last year. Source: Bloomberg

Zip Chair, Diane Smith-Gander, paid tribute to the outgoing US Chairman. “We respect Larry’s decision and express our appreciation of his extraordinary achievement, having co-founded Zip with Peter Gray in Australia in 2013,” Smith-Gander said.

“We acknowledge that there is a changing of the guard across the tech sector as companies have matured and their founders are now in a position to realise their next stage of contribution to their domestic and international communities.”

Diamond has indicated he intends to start a family office and philanthropic foundation.

Zip Co’s reported revenue this financial year was up 28 per cent, with revenue over the three months to the end of September up 19 per cent on the previous quarter.