Co-founder David Geffen converted his 3M Class B shares — which have 15 votes apiece — for Class A ones that only have one vote but that trade in the open market, the company disclosed this morning in an SEC filing. As a result, the filing says, “All of the shares of Class B Common Stock, which represent approximately 61% of the Company’s total voting power, are held by Jeffrey Katzenberg and entities controlled by him.” DreamWorks Animation adds that for the October 2 agreement it had to issue new Class A shares for Geffen and “did not receive any consideration” for doing so. Those shares were worth $20.13 apiece based on yesterday’s closing price. The Class B shareholders’ agreement bars Katzenberg and Geffen from swapping the shares, or selling to a third party, without the other’s consent, according to a summary in the DreamWorks Animation proxy. As a result of Geffen’s conversion, DreamWorks Animation now has 76,521,156 Class A shares outstanding and 7,838,731 Class B ones outstanding.
David Geffen Swaps Out Super-Voting Shares At DreamWorks Animation, Solidifying Jeffrey Katzenberg’s Control
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