Facebook says it has created a dual-class stock structure.
Startups sometimes take this step before an IPO.
In a statement, however, Facebook says “this revision to the stock structure should not be construed as a signal the company is planning to go public.”
“Facebook has no plans to go public at this time.”
In instances where the creation of a dual stock struction does precede an IPO, the idea is to create one class of “super-voting shares” for the company to own, and one non-controlling class for the public markets.
This enables holders of those “super-voting” shares (likely management or the VC investors) to maintain voting control of the company while selling some economic stake to the public.
Facebook says it changed the stock structure “because existing shareholders wanted to maintain control over voting on certain issues to help ensure the company can continue to focus on the long-term to build a great business.”
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.