Echoes of Google: Zillow's (NASDAQ:Z) board has approved the creation of Class C shares that carry no voting rights. On Aug. 14, Zillow will distribute two Class C shares for each Class A and Class B share owned by shareholders.
After the distribution, Class C shares will trade under the symbol Z, and Class A shares under the symbol ZG. Co-founders Rich Barton and Lloyd Frink are the sole holders of Class B shares, which carry 10x the voting rights of Class A shares
The move aims to further protect Barton/Frink and management from having to worry about shareholder revolts when making big decisions. Zillow, for its part, argues its action will enable the company to "continue its focus on long-term growth and innovation."
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