Meta is issuing a new non-voting Class C stock to allow Mark Zuckerberg to raise cash, pay a potential California wealth tax, and fund AI investments without diluting his voting control.
01Summary
- 01Meta announced a one-for-one stock dividend of new Class C shares, which carry no voting rights.
- 02Zuckerberg holds 60.6% of Meta's voting power through Class B shares, each with 10 votes.
- 03The new shares will be used to pay employees, fund acquisitions, and raise capital without diluting Zuckerberg's control.
- 04Zuckerberg told lead director Robert Kimmitt in July that selling Class B shares to cover a wealth tax could cut his voting stake to 53%.
- 05California's Proposition 40, a wealth tax on billionaires, will be voted on 3 November.
02Why it matters
This story matters because it shows how Meta is restructuring its equity to maintain founder control while funding a costly AI buildout, and highlights the potential impact of California's wealth tax on the state's richest residents.
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