Atlassian Co-Founder Farquhar to Sell Up to 3.39 Million Shares
Atlassian co-founder Scott Farquhar plans to sell up to 3,393,500 Class A shares worth more than $700 million, according to US regulatory filings. Co-founder Mike Cannon-Brookes will buy part of the stake, giving him more control than Farquhar for the first time.
Atlassian co-founder Scott Farquhar is set to sell up to 3,393,500 shares of the company's Class A common stock, worth more than $700 million at the latest market close, according to filings with the US Securities and Exchange Commission (SEC).
The sale would take place over about a year. The filings describe it as "part of Mr Farquhar's long-term strategy for individual asset diversification and liquidity."
Cannon-Brookes to buy part of the stake
Mike Cannon-Brookes, Farquhar's co-founder and Atlassian's chief executive, plans to buy either 2,507,500 shares or US$250 million of stock, whichever is worth less. The filings put that purchase window at the next six months.
The deal gives Cannon-Brookes more control over the company than Farquhar for the first time.
The two men founded Atlassian in 2002 after meeting at university in Sydney. The company is now worth about $56 billion, and both are billionaires.
What Farquhar said
Farquhar said he wants to focus on his not-for-profit work. He said he needed to "support Skip Foundation's work tackling some of the world's biggest challenges, starting with climate and the environment."
He described the move as the resumption of "a planned share sale program." He said his ties to the company are not changing.
"My commitment to Atlassian and its mission is unchanged," Farquhar said in a statement. "I remain a Board member and significant shareholder, with full confidence in the company's future."
Farquhar stepped down as co-CEO in August 2024, citing a wish to spend more time with his family and on philanthropy. He also co-founded Pledge1%, which encourages companies to donate one per cent of their revenue to social causes.
Shares under pressure
Atlassian is not listed in Australia. It trades on the Nasdaq, where its shares rose 0.79 per cent to US$154.90 at the latest close.
The stock has fallen by a quarter in the past month. It dropped 15 per cent in the last five days alone, after last week's US midterm elections.
The Democrats have vowed to investigate and regulate AI and tech giants after winning control of Congress. The share price has also been buffeted by the AI boom over the past 12 months, though it remains close to its January 1 level.
Earlier this year, Atlassian cut 1,600 jobs, about 480 of them in Australia. Cannon-Brookes defended the cuts, writing: "We fundamentally believe people and AI create the best outcomes. Our approach is not 'AI replaces people'."
