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"Facebook's (FB) float: a lesson in how to make $5B and not cede any control," tweets Katherine...

  • Thursday, February 2, 2012, 7:25 AM ET
    "Facebook's (FB) float: a lesson in how to make $5B and not cede any control," tweets Katherine Rushton, who writes while Mark Zuckerberg owns a 28.4% stake, he will have 56.9% of the voting rights, giving him total control over board selections, mergers, divestiture of assets, and who will control the company in the event of his death.
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This news story has 5 comments:

  • So why are they going public then....oh thats right...because Wall Street can sell this to the public and the insiders will make billions....got it..
    2 Feb 2012, 07:28 AM Reply Like
  • How can anyone invest in a company with a powerless board of directors and no voting rights? I think that people will stay away. But they will likely make money anyway, there are enough followers out there.
    2 Feb 2012, 11:09 AM Reply Like
  • Poor corporate governance setup (from a shareholder point of view). It can work if you have the right person in charge; ie. Buffet. Is Zuckerberg that 'kinda Guy? Is Facebook really all that? Time will tell.
    2 Feb 2012, 12:28 PM Reply Like
  • The exchanges and SEC should do something about the companies skirting the rules for no ownership of more than 25% of a public company.

    Theoretically, investors should also shun such companies, however sheeple seems to be the effective word for many investors and fund managers. It's understandable that fund managers don't care. After all they are free rolling on your money. The individual investor should certainly think twice before investing in such companies.
    2 Feb 2012, 12:55 PM Reply Like
  • This facebook IPO will be the start of a giant dotcom bubble. The same signs and symptoms.
    2 Feb 2012, 03:45 PM Reply Like
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