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>Facebook is Mark Zuckerburg's business and enterprise. He can do with it what he wants, just as any business or enterprise has the right to conduct their own b
by gozur88 11y ago
>Facebook is Mark Zuckerburg's business and enterprise. He can do with it what he wants, just as any business or enterprise has the right to conduct their own business.
It may be a little nit-picky to point it out, but in the general sense this isn't true. As soon as the company went public it stopped being Mark Zuckerburg's business and enterprise, becoming instead the property of the shareholders who employ Zuckerburg to look after their company. Zuckerburg owns less than 30%.
- shostack 11y agoDoesn't his share class factor pretty heavily into that statement though?
- gozur88 11y agoHmmmm. This is a pretty interesting (and unusual) story, now that I look into it. Part of the arrangement when FB went public is some of the larger investors ceded him irrevocable proxy rights for their shares, giving him over 50% of the votes even though he owns only 28.2% of voting shares. It's not so much a difference in share classes as a sort of side deal. http://venturebeat.com/2012/02/01/zuck-power-play/ http://venturebeat.com/2012/02/01/zuck-power-play/ But the point remains, even if it's kind of technical when he can always outvote everyone else. He can't treat the company as his personal fiefdom if it crosses the legal interests of other shareholders. If he goes too far they can probably sue successfully.