Walmart Inc. WMT announced Thursday that eight grandchildren of founder Sam Walton will gain voting rights over the family's holdings, expanding the total number of voting members to 11 in a significant transition of power for America's wealthiest retail dynasty.
What Happened: The Walton family holds roughly 46% of Walmart's shares valued at approximately $345 billion at current market prices. Walmart's current market capitalization stands at $750 billion.
The expansion marks a crucial step in preserving multi-generational control over the retail giant that began as a single Arkansas store in 1962.
According to Walmart's disclosure, the transition will not affect existing leadership roles or board seats held by family members. The company currently has two Walton family members on its 12-person board, including Steuart Walton, who in 2016 became the first grandchild elected to the board at age 34.
"The Walton family continues to believe in the importance of maintaining the appropriate balance of family and non-family ownership," the family stated in Thursday's press release, emphasizing their commitment to supporting all shareholders' interests and long-term business success.
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Why It Matters: This move follows earlier leadership transitions, including the 2015 appointment of Greg Penner, Sam Walton's son-in-law, as chairman, succeeding Rob Walton. The founding generation, including siblings Alice, Jim, and Rob Walton, now in their 70s and 80s, has been gradually stepping back from direct involvement in the business.
In 2022, Rob Walton and his family members notably expanded their business empire by acquiring the Denver Broncos NFL team for $4.65 billion.
Price Action: Walmart stock closed at $93.40 on Thursday, with analysts maintaining a consensus price target of $94.39, based on 31 analyst ratings.
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