Originally Posted by Bob Maxey
So what? Owning 57% does not give him the freedom to do anything he wants to do. He is not spending his cash; he must also be mindful of the other shareholders who might not like what MZ did.
Especially when it comes to spending a billion dollars in secret.
Perhaps the board will bend to Mark's will. So what? The board also bends to the will of the stockholders and I am not sure they are all that pleased these days. That said, it might be possible the board either cannot or will not do anything about it, anyway. Not so sure the stockholders will not sue.
This will likely end up in court. Shareholders can bring a law suit, after all. Not saying they will prevail.
Lots of bad things we never read about happen every day. Like CEOs giving themselves raises or like the case of Zuckerberg, spending a ton of cash behind closed doors.
I think someone is headed to court, eventually.
You must not know much about how companies operate. With Zuck having a 57% control at the time he could do anything he wanted. The shareholders really had sod all to do with it.
A post IPO FB would perhaps find it harder to do such deals, however at the time it was private and Mark could do pretty much whatever he wanted. Board be damned.