May 21, 2012

Facebook founder’s iron-grip IPO could sink or save site

Weighting of Facebook founder Mark Zuckerberg’s shares in the social network to ensure he keeps majority control after the IPO could present accountability issues, experts warn, and could prove a turnoff to investors. Zuckerberg will hold over 28-percent of Facebook once it floats, but thanks to a double tiered stock structure his shares will be worth 10x more in voting power than common stock.

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Facebook founder’s iron-grip IPO could sink or save site
[ Chris Davies / SlashGear ]