David Geffen relinquishes all super-voting stock
CEO Jeffrey Katzenberg is officially top dog at DreamWorks Animation with 61% of voting control after his former DreamWorks partner David Geffen relinquished all super-voting stock.
The company said in an SEC filing Tuesday that Geffen has converted 3 million shares of the super voting Class B stock into an equivalent number of less potent Class A shares issued by DreamWorks Animation.
Media companies, including Viacom, News Corp. and others, often use two classes of stock that give enhanced voting power and de facto control to a certain group of shareholders, usually founders and owners, and their close allies.
The move was voluntary. “Upon such conversion, the Geffen Entities ceased to own any shares of Class B Common Stock,” the filing said. DWA didn’t receive any payment for the Class A shares it issued.
DWA said it now has a total of 76.5 million shares of Class A common stock outstanding, and 7.8 million shares of Class B.
All of the B shares, repping approximately 61% of the company’s total voting power, are held by Katzenberg and entities controlled by him.