DreamWorks Animation co-founder David Geffen has converted the rest of his Class B Stock to Class A stock, which carries less voting power.
Each Class B share is worth 15 voting rights, while Class A shares carry one vote each. CEO Jeffrey Katzenberg now holds all Class B stock, the company said.
"All of the shares of Class B common stock, which represent approximately 61 percent of the company's total voting power, are held by Jeffrey Katzenberg and entities controlled by him," the studio said in a regulatory filing. It didn't specify how much Class A stock he holds.
DreamWorks Animation has issued 3million shares of its Class A common stock "upon the voluntary conversion of an equivalent number of shares of its Class B common stock held by David Geffen and two entities controlled by Mr. Geffen," the studio said in a regulatory filing. "Upon such conversion, the Geffen entities ceased to own any shares of Class B common stock."
Katzenberg and Geffen previously jointly controlled 68.4 percent of the company's voting stock, DWA disclosed earlier this year. It didn't immediately say by how much the stock conversion reduced Geffen's and the two founders' combined stake.
According to older regulatory filings, the board of DWA will contain "one individual designated by David Geffen for so long as he controls an entity that holds Class B stock." That would mean that he is set to now lose that right to designate a board member.