Facebook IPO Shares To Be Divided Into Classes
Posted by Rant4u
Since Facebook announced their intention to go public, it seems the news is all anyone can talk about. Much speculation has been batted around regarding exactly how it will be done and how it will affect users.
WebProNews recently spoke to Chris Treadway, founder of Polygraph Media, about the latest Facebook venture.
“Users will be affected because Facebook will be trying to do everything they can to increase revenues, increase profits, while kind of gradually, incrementally making the user experience a little more… advanced with every passing day,” Treadaway said.
The owners of the social media giant are expecting to raise $5 billion with the IPO. According to their prospectus, the company’s shares will be divided into two classes, which will be identical except for two very important elements:
“The rights of the holders of Class A common stock and Class B common stock are identical, except voting and conversion rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to 10 votes and is convertible at any time into one share of Class A common stock.”
What does this mean, exactly? Basically it means that Class A shares will be sold to the general public to be traded on Nasdaq. Class B shares are reserved for Facebook big-wigs, namely Mark Zuckerberg. While he only owns 28% of the company, his claim to the shares gets him a huge chunk of voting rights. Read More
- Click to share on Twitter (Opens in new window)
- Share on Facebook (Opens in new window)
- Click to share on Tumblr (Opens in new window)
- Click to share on Reddit (Opens in new window)
- Click to share on Pinterest (Opens in new window)
- Click to email (Opens in new window)
- Click to share on Google+ (Opens in new window)
About Rant4uA Revolution in Social Networking
Posted on May 6, 2012, in #breaking news, #business news, #facebook IPO's, #facebook stock, #financing and tagged common stock, facebook, facebook going public, facebook IOP's, investing, social-media, stock, stock classes, technology, voting rights. Bookmark the permalink. Leave a comment.