Bill Gates From 1/O's to Cars - Buys Stake in AutoNation Dealer Group

Microsoft Corp. Chairman Bill Gates now has a 5˝ percent stake in dealership chain AutoNation Inc., according to a disclosure filed Monday, July 21, with the Securities and Exchange Commission.

In betting on auto dealerships, Gates joins fellow technology pioneer Michael Dell. Dell announced plans in May to team with former Sonic Automotive President Jeffrey Rachor to start a joint dealership venture. Dell is the founder and CEO of personal computer giant Dell Inc.

The stake makes Gates AutoNation's third-largest shareholder, according to Bloomberg. As of mid-afternoon yesterday , AutoNation stock shares were trading at $9.10 on the New York Stock Exchange, which makes Gates' 9.9 million-share stake worth more than $90.1 million. AutoNation's shares have climbed by almost $1 a share since Gates' share was disclosed just after 4 p.m. Monday.

AutoNation, of Fort Lauderdale, Fla., has 321 vehicle franchises in 15 states with a range of U.S., Asian, and European automobile brands. AutoNation ranks No. 1 on the Automotive News list of the top 100 dealership groups in the United States with retail sales of 328,963 new vehicles in 2007.