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24 April 2017 13:27 (South Africa)

Facebook restructures stock to give founders greater control

  • Branko Brkic
    branko3048 a ray
    Branko Brkic

    Brkic is the founder and editor of The Daily Maverick.

    He has edited magazines on business and politics, technology, and wildlife. He has also published fiction and non-fiction books, most of them in Serbian. Though he has never pretended to be a reporter, his wide knowledge of politics (especially in America), combined with his experiences in a disintegrating Yugoslavia, gives him an unusual outlook on events in South Africa.

    Despite the vowel-poor surname, he tells anyone who asks that he hails from Hyde Park, Johannesburg, having spent most of his adult life in South Africa.

    Recent columns:

zuckerberg

Facebook is creating a dual-class stock structure for itself, by converting all of its current shares into so-called Class B shares, each of which will have 10 votes on matters of corporate governance. Class A shares, sold in an initial public offering, would carry one vote. For now, Facebook boss Mark Zuckerberg wants to retain firm control over the company and its board of directors, as it focuses on a long-term plan to build the business. In a note to the market, Facebook said the move over its share structure should not be seen as a signal the company is planning to go public. Dual-class stock structures are common among growing businesses, as many people who start companies seek to preserve control even as they sell shares to the public. Read more: New York Times

  • Branko Brkic
    branko3048 a ray
    Branko Brkic

    Brkic is the founder and editor of The Daily Maverick.

    He has edited magazines on business and politics, technology, and wildlife. He has also published fiction and non-fiction books, most of them in Serbian. Though he has never pretended to be a reporter, his wide knowledge of politics (especially in America), combined with his experiences in a disintegrating Yugoslavia, gives him an unusual outlook on events in South Africa.

    Despite the vowel-poor surname, he tells anyone who asks that he hails from Hyde Park, Johannesburg, having spent most of his adult life in South Africa.

    Recent columns:

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