Mark Zuckerberg is the next Rupert Murdoch, and given internet time he might get there in a couple of years not decades, says Rob Cox of Reuters.
He says that users and investors are ceding so much control over to Zuckerberg that it is bound to stop being in their best interest.
Due to proxies, Zuckerberg’s shares have 10 times the votes of ordinary shares. That wields him 57 percent of the votes despite controlling 28 percent of the shares. That lets him overrule the majority.
He says investors have allowed Zuckerberg to maintain an iron grip on Facebook (FB) because his dorm-room project is about to fetch them $75 billion, more than the combined market capitalizations of Viacom, News Corp and The New York Times.
Cox says that Murdoch’s News Corp, Sumner Redstone’s Viacom and the Sulzberger family’s NY Times are among the myriad companies controlled by individuals or families whose ambitions no longer fully align with those of a majority of their shareholders and users if I might add.
This absolute power was on display when Murdoch nominated his two sons to the News Corp board. The other 88 percent of News Corp shareholders that did not share his name opposed the move but Murdoch was able ignore their votes due to the voting structure that gives him absolute power.
Facebook is not the only company with such a structure, the founders of Zynga, Google have wield similar power.