Unlike many other Big Tech firms, Twitter doesn't have a dual-share class system, and it could wish it did if things go poorly with Musk.
asy lie the heads that wear the corporate crowns at Meta, Alphabet and Snap, as well as Berkshire Hathaway, Ralph Lauren and the New York Times Co.Why’s it better for the company chieftans at Meta and the others? Their firms have dual-share classes, two types of stocks designed to keep control firmly in insiders’ hands. Typically, a founder sets up these dual shares as a startup heads for the public market and that person wants to keep hanging onto power.
Meta has probably one of the most extreme examples of a dual-share system. It has Class A shares, which you or I can buy, most recently for $214 a pop. For each Class A share, we get one vote. Meta also has Class B shares, which we can’t purchase. Each Class B share gets 10 votes. CEO-founder Mark Zuckerberg controls over 90% of the Class B stock through personal shareholdings and agreements with other Class B owners. Put another way: Zuck may only own about 14.
Further, it’s not clear Dorsey, who returned to be Twitter CEO from 2015 through November 2021, would’ve wanted dual shares. More recently, he has become a proponent for decentralization around technology companies, and in 2019, he launched Bluesky, a Twitter-funded project to study how best to decentralize some elements of social media. With Dorsey again gone from the CEO role, it has passed to Parag Agrawal, Twitter’s former chief technology officer who also ran Bluesky.
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