Zynga plans to create an unusual triple-class ownership structure that will allow its founder and chief executive, Mark Pincus, to keep tight control over voting power after its IPO. The company is offering Class A shares to new investors, but keeping Class B and Class C shares within the control of current owners, including management.
While Class A shareholders will be entitled to one vote per share on company matters, Class B and Class C shares will entitle their bearers to more than one vote per share, though the exact number hasn't yet been outlined by the company.
Mr. Pincus, who named the company after his late American bulldog, stands to reap the greatest fortune from the IPO, with 16% of its class B shares and 100% of its class C shares. The deal is also likely to provide a big boost to Kleiner Perkins Caufield & Byers, the storied Silicon Valley venture firm, which holds 11% of Zynga's stock.
Note to self.
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