Mark Zuckerberg’s majority control over Facebook Inc., a model adopted by founders of Zynga Inc. and Groupon Inc., has become the new normal in Silicon Valley as entrepreneurs’ desire to hold sway trumps shareholder power.
At least 10 of last year’s technology initial public offerings included a special class of shares that give the founders more votes than new shareholders, according to data compiled by Bloomberg. Only five such IPOs were filed in 2010, with four in 2009 and three apiece in 2005 and 2007. In addition to Groupon and Zynga, companies such as Zillow Inc. (Z) and LinkedIn Corp. (LNKD) have embraced the approach.
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