New Facebook share structure hints at IPO

Filed under: Google (GOOG), New York Times'A' (NYT), News Corp'B' (NWS), Initial public offerings

Facebook is implementing a new stock structure to make sure the founders retain control, immediately causing rumors about an impending initial public offering. Why would Facebook need Class A and Class B shares otherwise? Under the new structure, which is similar to Google's (GOOG), Mark Zuckerberg and other early entrants wouldn't have to worry about yielding the floor to outsiders <strike>when</strike> if the company goes public.

The stock structure was adopted to ensure that existing shareholders keep control on voting issues, according to Facebook statement. No details were given as to who the winners are in this arrangement, but a Wall Street Journal report says that, according to its sources, all current shareholders would be converted to Class B shares, which carry 10 times the voting rights of Class A shares.

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New Facebook share structure hints at IPO originally appeared on BloggingStocks on Wed, 25 Nov 2009 08:30:00 EST. Please see our terms for use of feeds.

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