Lyft IPO shows how tech CEOs become powerful before profitable GlobeBusiness
But over the years, as the ride-hailing app secured financing to fight for market share against rival Uber Technologies Inc., the founders’ ownership stakes were diluted, and now they own less than 10 per cent of company stock.
Mr. Green and Mr. Zimmer – who are the company’s chief executive officer and president, respectively – will have 20 votes per share, compared with a single vote for everyone else, affording them an outsize influence over company decisions. It’s not merely a tech situation, either. Companies in other sectors have used dual-class structures for decades. If anything, the tech sector was slower to do so.Today, many of the world’s largest tech companies have dual-class share structures, including Alphabet Inc. and Facebook Inc. Proponents argue it allows key executives to focus on a company’s long-term strategy without being dogged by quarterly shareholder scrutiny.
Lyft fits neatly into that trend, too. The company lost nearly US$1-billion in 2018 on just more than US$2-billion in revenue, and it will likely continue spending big as it competes with Uber.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Levi Strauss IPO prices above target, valuing iconic jean maker at US$6.6-billionCompany reports it sold US$623.2-million in shares during its initial public offering on Wednesday
Read more »
Image-sharing blogging website Pinterest files for IPOThe image search website is known for the food and fashion photos that its users post. The company plans to list under the symbol ‘PINS’ on the New York Stock Exchange
Read more »
Ontario Power Generation CEO tops province’s annual ‘Sunshine List’ of public sector earnersJeffrey Lyash, who is set to leave his job as president and CEO of OPG later this week, saw his salary jump by nearly $200,000 from 2017
Read more »
Apple's foray into video shows limits to tech growthApple may have decided that it doesn’t have much choice amid declining sales of its premier product, the iPhone
Read more »
MLB suspends Giants CEO Larry Baer after video showing him in physical altercation with his wifeMLB suspends Giants CEO Larry Baer after video showing him in physical altercation with his wife Globe_Sports
Read more »
Poulin: Kucherov's power-play goal shows Lightning's confidenceTSN Hockey analyst Dave Poulin breaks down the Lightning's beautiful power-play goal that saw Nikita Kucherov finish off a passing play that oozed of confidence.
Read more »
Uber, Pinterest reportedly settle on NYSE for respective IPOsThe New York Stock Exchange has become the bourse of choice for big tech companies in recent years after NASDAQ famously bumbled Facebook’s intial public offering with massic tech errors
Read more »