Mark Zuckerberg just lost a battle to retain control of Facebook even if he sold off most of his stake in the social network. That’s because shareholders didn’t like his plan to create a new share class with greater voting rights that would have allowed him to stay in charge whatever he did with his own stock. Now Zuckerberg and Facebook have dropped the idea just ahead of the start of class action suit challenging the ploy.
The Zuck claims he decided not to push ahead with the strategy decision because the company’s stock had appreciated so much he didn’t need a new class of shares after all. Others believe it represents a blow to Silicon Valley founders aiming to maintain control of their tech babies.