Chapter
The Reason Dual Class Emerged
47:27 - 51:33 (04:05)
The historic performance of successful internet companies has shown that having a founder stay involved for a long time leads to better outcomes. The ability to negotiate compensation packages and have clarity on the important aspects of the business matter more than having multiple classes of stock.
Clips
Dual class structures have emerged and been seen as viable in tech companies because founders who stay involved for a long time tend to increase the company's performance.
47:27 - 50:18 (02:50)
Summary
Dual class structures have emerged and been seen as viable in tech companies because founders who stay involved for a long time tend to increase the company's performance. Giving the CEO control by having one class of stock has turned out to be an effective way to win a deal.
ChapterThe Reason Dual Class Emerged
EpisodeE102: Elon closes Twitter deal, $META uncertainty, Zuck's historic bet, big tech decline & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The founders letter from the IPO in 2004 shows that Larry and Sergey believed sacrificing long-term opportunities to meet quarterly expectations was harmful to businesses.
50:18 - 51:33 (01:14)
Summary
The founders letter from the IPO in 2004 shows that Larry and Sergey believed sacrificing long-term opportunities to meet quarterly expectations was harmful to businesses. This statement resonated in Silicon Valley during an era of rebuilding the internet as companies were looking towards making larger, less predictable returns.