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Multiple-voting shares: good or evil?

Started by mathewi · 5 months ago

Marc Andreessen has an excellent rundown on his blog of the issues and possible outcomes in the Microsoft-Yahoo takeover battle — something that virtually any newspaper I can think of would be pleased to run as an analysis piece. With the help of a couple of corporate M&A lawy ... Continue reading »

2 comments

  • Ddonat

    5 months ago

    I absolutely 100% agree with you, Mathew. Once you are in the public market dual class voting shares are ripe with danger. To support them, I think you are implying that you believe in Benevolent and slight Omniscient Founder(s)/Management - that simply is naive. Control in the market system, means delivering 'the returns', not having preferred voting shares. If you are doing well, no one is going to be able to wrestle control from you.

    But, if a take over comes along that is offering a 40% premium to where your stock presently is trading that is a reflection on present management which is performing poorly. Why would you ever want to put MORE votes in the hand of founders and managers that are performing poorly? Who's interests does that serve? It certainly is not the public investor.
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  • mathewi

    5 months ago

    Totally agree, David.
    reply

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