Facebook is the most popular social network site founded in 2004 and it has more than 200 million active users world wide. Zuckerberg, the CEO and co-founder of Facebook company announced that the company is creating a dual-class stock structure. Google also introduce dual-class stock structure in 2004.
The Facebook dual-stock structure news was first reported by The Wall Street Journal. The company will be converting all of its current shares into Class B shares. The Class B shares have ten times more voting power than the Class A shares. The Class A shares carry one vote, which would be sell in an IPO (Initial Public Offering). Facebook company has large investments from the Microsoft corporation and Digital Sky Technologies. Digital sky technologies is a Russian based company and it purchased $100 million of Facebook shares from employees and ex-employees, at a $16.5 billion valuation.
The Dual-class stock structure gives the special voting shares to existing shareholders to maintain control of the company. By making this dual class stock structure, the current share holders of Facebook company will have 10 times the voting power on corporate governance.
The Facebook dual-stock structure news was first reported by The Wall Street Journal. The company will be converting all of its current shares into Class B shares. The Class B shares have ten times more voting power than the Class A shares. The Class A shares carry one vote, which would be sell in an IPO (Initial Public Offering). Facebook company has large investments from the Microsoft corporation and Digital Sky Technologies. Digital sky technologies is a Russian based company and it purchased $100 million of Facebook shares from employees and ex-employees, at a $16.5 billion valuation.
The Dual-class stock structure gives the special voting shares to existing shareholders to maintain control of the company. By making this dual class stock structure, the current share holders of Facebook company will have 10 times the voting power on corporate governance.
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