Zuckerberg recently in his facebook post shared that the board has agreed to withdraw their plans to issue Class C no-vote stock and has resolved the shareholder lawsuit seeking to block the corporate governance overhaul.
Last year in April, Mark introduced a new class of non-voting stock for the company, which was designed to retain his control in the company, which turned out not so popular amongst its stakeholders. According to this restructuring, the people who would have purchased what’s called Facebook’s “Class C” stocks would not have any voting rights. Giving Mark, who has control of the company, increased protection against agitation from investors and more room to focus on Facebook’s core strategy.
But today, he announced that they will withdraw its plan to issue “Class C” stocks. Eventually, it turns out that Zuck himself is so rich that he will go ahead with selling a small amount of his personal share to deliver plenty of capital to his Chan Zuckerberg Initiative foundation that aims to help eradicate disease and deliver personalized education to all children.
Zuckerberg was slated to testify in the suit later this month, but now he wouldn’t be required to do so.
Mark’s dream are to accomplish social missions and address global challenges. He along with Priscilla is working to cure diseases and provide personalised education to children.
“I’ve often said Facebook was not originally founded to be a company, but to accomplish a social mission. To help us focus on our mission and make decisions that don’t always pay off right away, Facebook has always been structured as a controlled company. This has helped us serve our community best,” said Mark in a post.
“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,” Zuckerberg added. Facebook’s share price has increased roughly 45 percent, from $117 to $170, since the Class C stock plan was announced, with Facebook now valued at $495 billion as per TechCrunch.
A spokesperson for the Chan Zuckerberg Initiative told TechCrunch that this outcome is very good for the foundation, because it provides more predictability to its funding. The plan will also allow Zuckerberg to deliver cash to the CZI sooner, which its new CFO Peggy Alford will be able to allocate between its health, education and advocacy projects.
“I want to be clear: this doesn’t change Priscilla and my plans to give away 99% of our Facebook shares during our lives. 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,” he wrote.
Mark’s ideologies seems to work pretty efficient for now, from the times when Facebook acquired Instagram and Whatsapp, which seemed a little too pricey then; but now have grown many folds.
“We have a lot of work ahead at Facebook to help build community and bring the world closer together. We also have a lot of work at the Chan Zuckerberg Initiative working with amazing scientists, educators, and doctors around the world who need support today, not decades from now. This path offers a way to do all of this, and I’m looking forward to making more progress together,” Zuck concluded.
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