Mark Zuckerberg has dropped plans to reclassify stocks
Mark Zuckerberg has dropped plans to reclassify stocks in order to stay in control of his social networking site. In a post on Facebook, he categorically stated that he was abandoning plans to create a class of stockholders without voting rights. Zuckerberg said that he and wife Priscilla will sell off all their shares of the company and purse philanthropy. He said that the value of his stocks has reached a level that can fund the philanthropy work pursued by him and his family. He had asked the board to stop considering the reclassification of stocks that was accepted by the board.
“Over the past year and a half, Facebook’s business has performed well and the value of our stock has grown to the point that I can fully fund our philanthropy and retain voting control of Facebook for 20 years or more,”
“As a result, I’ve asked our board to withdraw the proposal to reclassify our stock — and the board has agreed.”
There was a move by the company’s stockholders to stop the plan by the company. The plan had been sued by some of the company’s stockholders. Zuckerberg was expected to testify in court on Tuesday. The Facebook CEO said that the scrapping of the classification will not affect the charity work that his family does.
“In fact, we now plan to accelerate our work and sell more of those shares sooner. I anticipate selling 35-75 million Facebook shares in the next 18 months to fund our work in education, science, and advocacy.”
Earlier, Facebook was in the midst of a storm when it posted political ads on its website during US elections. It was accused that it posted political ads on the website in an apparent effort to influence the country’s elections. Reacting to this, Zuckerberg said that the company would hand over information on the ads to congressional investigators and revise its political advertising policies to increase transparency.