Facebook paid billions to spare Zuckerberg in data suit, shareholders allege

Re:Facebook paid billions to spare Zuckerberg in data suit, ... by marketingtech on Thursday September 23, 2021 @05:02PM (#28635339)

Facebook has two types of stock. Class A and Class B. Class B stock gets 10 votes per share, while Class A stock gets 1 vote.

Zuckerberg and other very early people had Class B stock so they can continue to have more than 50% of the vote even when they own less than 50% of the stock.

This was a really popular stock structure in Silicon Valley for a while because it cements founders in control - Evan Siegel at Snap has the same deal, and Adam Neumann at WeWork was about to do it. But now there's a lot of push back against it, and some indexes like the S&P 500 refuse to list new stocks with this dual class structure.

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Re:Facebook paid billions to spare Zuckerberg in data suit, ... by ksherlock on Thursday September 23, 2021 @09:15PM (#28637572)

Class A $SNAP have no voting rights.

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Re:Facebook paid billions to spare Zuckerberg in data suit, ... by soperj on Thursday September 23, 2021 @05:52PM (#28636034)

why just new ones? delist the old ones.

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Re:Facebook paid billions to spare Zuckerberg in data suit, ... by opinion-is-bad on Thursday September 23, 2021 @06:34PM (#28636438)

Hard to delist Facebook and Alphabet.

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Re:Facebook paid billions to spare Zuckerberg in data suit, ... by kelnos on Thursday September 23, 2021 @08:28PM (#28637272)

Note that the S%P doesn't have the power to delist stocks. They can drop them from their index (which certainly would cause some reputational harm and probably lower the stock price a bit, at least temporarily), but FB will continue to trade on Nasdaq.

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