Gates Foundation Sells $3.2B Microsoft Stake; Ackman Buys $2.3B

The Bill & Melinda Gates Foundation Trust sold its entire $3.2 billion Microsoft stake on May 15, and Pershing Square Capital Management disclosed a new 5.65 million-share Microsoft position valued at about $2.3 billion. Microsoft shares slipped 0.42% to $422.07 on the same day.

The foundation’s disposal totaled about 7.7 million Microsoft shares. The holding was built largely through direct donations of Bill Gates’ personal Microsoft stock and had been held for nearly three years. Foundation documents state the liquidation will provide cash for increased grantmaking and is part of a plan to wind down the endowment by 2045. The foundation has committed to raising annual grantmaking to $9 billion by 2026. Sales of the stock are subject to a federal excise tax of 1.39% on net capital gains.

Pershing Square reported it accumulated 5.65 million Microsoft shares over the prior quarter and values the position at roughly $2.3 billion. The firm reported an average cost basis near 21 times forward earnings. In a post announcing the position, Bill Ackman wrote: “In our 13F which we will file later today, we will disclose a new position in Microsoft, a company we have followed for many years now offered at a highly compelling valuation.” Ackman framed the purchase as a valuation bet on Microsoft’s artificial intelligence position following a shift of OpenAI’s cloud business in February.

Pershing Square’s purchases accounted for only part of the foundation’s 7.7 million-share exit. The additional supply coincided with the intraday price dip even as other developments pointed to demand for Microsoft’s cloud and AI services.

Recent Microsoft deals include a roughly $9.7 billion agreement tied to AI data-center capacity and a commercial partnership with the London Stock Exchange. Microsoft has continued to be a major contributor to the S&P 500’s performance this year.

The filings reflect a rotation of ownership: a charitable trust converting a large equity holding to cash for philanthropic purposes and a hedge fund increasing exposure based on its valuation view and AI thesis.