Paul Allen Reduces Stake In Egghead To 6 Percent

Microsoft Corp. co-founder Paul Allen’s investment company cut its stake in Egghead Inc., a software retailer that last week bet its future on selling products through the Internet.

Allen’s Vulcan Ventures Inc. cut its Egghead stake to 6.0 percent from 7.2 percent. Vulcan sold shares between Dec. 1 and Dec. 4 for $6.94 to $7.25 each, according to a filing with the Securities and Exchange Commission. Vulcan’s holdings fell to 1.37 million shares after the sale from 1.66 million shares, the amended Schedule 13D filing said.

Spokane-based Egghead last week said it will close all its retail stores, fire 80 percent of its workers, and rely solely on the Internet for sales.

“I don’t know Paul Allen, I don’t know his reasons for selling his shares. But I like the company, and I like what the company’s doing,” said Casey Stern, an analyst at Starr Securities Inc. who rates Egghead’s stock a “buy.”

Egghead shares fell 18-3/4 cents to close at $7.56-1/4 on the Nasdaq Stock Market. The shares have fallen about 32 percent since reaching a 52-week high of $11.12-1/2 on Oct. 9.

“The sale n December was a periodic divestiture of shares,” said Susan Pierson, a spokeswoman with Vulcan. She declined further comment.

Bellevue, Wash.-based Vulcan invests in technology start-ups, among other areas.

Allen’s other investments include the Portland Trail Blazers basketball team, the Seattle Seahawks football team, and the DreamWorks SKG film studio. Allen still sits on Microsoft’s board.

Allen served as an Egghead director until 1996. He was replaced by Eric P. Robison, who has worked for Vulcan since 1994.