We recently posted an article that in part detailed our view on non-voting share issuances (hint: we despise them). In the spirit of healthy follow-up, I shared my view with SEC Chairman Jay Clayton. Read my note to Chairman Clayton HERE.
We Have Entered an Unprecedented Era of Shareholder Tolerance It is interesting that corporate boards and institutional investors are willing to tolerate “Distracted CEOs” and founder CEOs who wish to exercise outsized control of the companies they founded. Both are examples of poor corporate governance. Our definition of a Distracted CEO is the CEO that…
Recently Facebook (tkr: FB) signed an agreement with Universal Music Group to license UMG’s music library so that Facebook users may incorporate UMG music into user-generated content. Facebook’s Instagram platform is the hottest social media platform at the moment. Instagram kneecapped Snapchat (tkr: SNAP) earlier this year when the former rolled out its “stories” feature. Instagram has further extended its lead over Snapchat and Twitter (tkr: TWTR) by making music available to users – who essentially may create mini soundtracks for each post. Facebook’s limitless balance sheet makes the company an attractive prospective customer/partner for cash hungry music labels. We expect that UMG will be the first in a string of music licensing agreements for Facebook – effectively putting the squeeze to Twitter, Snap and any upstart social network. Snap plans to respond by rolling out a “stories”-like feature called “stories everywhere” which will extend beyond the Snapchat network.