Facebook restructures stock to give founders greater control
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
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