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Facebook News & Update: Mark Zuckerberg In 'Titan' Form; Wants Complete Control?

Facebook News & Update: Mark Zuckerberg In 'Titan' Form; Wants Complete Control?

Prior this year, the Facebook CEO, Mark Zuckerberg went to his shareholders with an unavoidable issue: would they still affirm him keeping up voting control of the company, regardless of the possibility that he might sell most of his stocks? The grand move would profit Zuckerberg because it would give him a chance to offer shares to fund philanthropy, yet it could harm the speculators by diluting their power over decision making.

According to SFGATE, Zuckerberg has a voting control among shareholders since his stocks have a large portion of the voting rights. He proposed another set up of another stock class. The shares would instantly dilute the voting force of existing shareholder. Meanwhile, in the new arrangement, the nonvoting shares will be less attractive as currency in obtaining and make it harder for Facebook to get tax reductions.

With the CEO's blessing, Facebook's board of panel picks up three executives who were least under the obligation of Zuckerberg or financially influenced by the decision. They have chosen Susan Desmond-Hellmann, Marc Andreesen, and Erskine Bowles as per administrative filing. However, Andreessen is an investor of Andreessen Horowitz and a long-term board member, and a close partner of Zuckerberg.

Bloomberg Technology stated that Andreessen drops information about development and concerns to Zuckerberg, for helping him to negotiate with them, as indicated in the court documents. The records that includes the transcripts of private messages between the two men, reveals the inner workings of the board of directors at a vital time for Facebook. At some point, when the board desired to ask Zuckerberg to questions on a conference call, he warned Andreessen about what he will before the executives suggested the conversation started.

Because of that incident, the Facebook representative said that the Facebook is confident that the special council occupied with a careful and reasonable procedure to arrange a proposition to the greatest advantage of Facebook and its shareholders. Facebook is probably going to argue that the text messages were not part of a secret discussion, as indicated by a man acquainted with the matter.

Andreessen recently caught up in a conflict-of-interest. He invested off the leading body of eBay in March 2014 after the public fights with Carl Icahn, an activist financial specialist who pushed for the companies to beach with PayPal, its installments unit. Andreessen had put investment into a company that competed with PayPal despite allegations of a conflicting interest. 

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