The company, which owns assets such as the New York Times Building and the MetroTech Center, eliminated its
dual-class stock structure, thereby diluting the Ratner family's voting control over the firm.
Media moguls like Sumner Redstone and Rupert Murdoch have built empires with a
dual-class stock structure that ensures their iron grip.
1) A
dual-class stock company has a capital structure whereby insiders
The spotlight on
dual-class stock is not reserved just for technology IPOs.
Under a
dual-class stock structure, Facebook founder and chief executive Mark Zuckerberg retains 57.
The board, though, is controlled by the Dillard family under a
dual-class stock arrangement.
Families are more likely to maintain control when the efficient scale is small the need to monitor employees is high, investment horizons are long, and the firm has
dual-class stock.
In November, Facebook announced a
dual-class stock structure to ensure voting control by existing owners, but reiterated it had no plans yet to go public.
Media General has a
dual-class stock structure that ensures control by holders of Class B stock, which is not publicly traded and is controlled mainly by Bryan family members and other company insiders.
We are indeed fortunate to have a
dual-class stock ownership structure, so that such a short-term and misguided agenda can be seen for what it is, and can be thoughtfully compared to our carefully developed, long-term focus on building long-term value for all stockholders," said Marshall Morton, the Richmond, Va.
In their first case, they look at an efficiently operated company with
dual-class stock.
