Instagram went from a site for photographers to Reels everywhere (and login walls on every page)
Zuckerberg is awful. Awful, awful, awful.
Other than ad revenue, the company hasn't had any big wins. VR didn't take off. Metaverse didn't take off. AI models didn't take off. All multi-billion dollar ventures. Any other board would have sacked him by now.
Because of the existence of Class B shares.
it's because he controls the board by being the majority voting shareholder.
This is what happens when the gov't decides that it is legal for share classes with different voting rights. It ensures that you can sell equity to obtain money, without actually giving up control of said company at all. In theory, buyers would discount the sold equity due to this, but in practice, they don't (esp. if they're retail buyers).
Interesting consequence.
EDIT: Initially, this is nuts. How can I give "own" part of a company and not have a say. Sounds like a silent partner scheme. Looks like this a per state thing.
There is this ruling Business Roundtable v. SEC (1990) that strikes down an SEC rule that prevented corps from going public if they didn't follow "one-share-one-vote".
Of course the counter-argument is "makes money". That first of all doesn't make a good CEO (if you put no money into maintaining your site, for example), second of all it ignores all the fraud
In my mind, eventually it has the same fate as twitter? KTLO ops for printing money.