Facebook Inc., the reigning social-networking site has introduced a dual-class stock structure to allow existing shareholders retain voting power. The decision is not intended to signal that the company is going public nor do they have plans to hold an IPO at present.
“We did introduce a dual-class stock structure because existing shareholders wanted to maintain control over voting on certain issues to help ensure the company can continue to focus on the long term,” said the company in a statement. In May, founder Mark Zuckerberg mentioned expectations for the company to go public but made it clear it wasn’t a priority. Suspicion surrounds the decision; however, as early investors recall Google Inc. implementing a dual-class structure with the founders getting 10 votes per share before going public in 2004. Facebook seems a prime candidate to go public in the near future with 300 million registered users with the site and an excess of $600 million in investments, including $200 million from Russia’s Digital Sky Technologies.
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