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[BUSINESS] · United States · 11 sources

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Part of situation: Meta Platforms stock performance and AI valuation scrutiny (12 clusters)

Meta introduces new nonvoting shares to protect Zuckerberg's control

Meta Platforms Mark Zuckerberg Proposition 40 nonvoting shares California wealth tax

Meta Platforms has approved the creation of a new class of nonvoting shares, designated as Class C, to facilitate future financing and protect Mark Zuckerberg's controlling interest in the company. The board plans to issue these shares via a dividend, effectively acting as a two-for-one split for existing Class A and Class B shareholders. This restructuring is expected to take effect on January 19, 2027.

The move is widely viewed as a strategic response to California's proposed Proposition 40, a ballot measure that could impose a one-time five percent tax on billionaire wealth. Because Zuckerberg's wealth is primarily tied to Meta stock, he could face a tax bill of approximately $12 billion. The new Class C shares would allow him to sell equity to cover such liabilities without diluting his approximately 60.6 percent voting power.

This announcement follows reports that Zuckerberg considered moving out of California and issued an ultimatum to the board regarding his residency and involvement in the company. While Meta's third-quarter revenue grew 26 percent year-over-year to $64.6 billion, the company also reported a negative free cash flow of $2.1 billion, driven by massive investments in artificial intelligence infrastructure.

Entities

California · Los Angeles Times · Mark Zuckerberg · Meta · Meta Platforms · Nasdaq · SEC

Claims

What the coverage asserts, and how many sources carry each claim.

Sources

Should Investors Buy the Meta Platforms Dip? | The Motley Fool [www.fool.com]
Meta VR Glasses: Características, Precio y Novedades [androidayuda.com]
Meta Creates a Nonvoting Share Class to Protect Control [cumbernauld-media.com]
Zuckerberg blinda su control en Meta ante la tasa de California [eloutput.com]
Meta : une manœuvre financière pour préserver le pouvoir de Mark Zuckerberg [www.24matins.fr]
Zuckerberg stellt Ultimatum – Meta ändert Aktienstruktur [www.finanzen100.de]
Neue Aktienstruktur bei Meta – ein Mann ist der Profiteur [www.mannheim24.de]
Neue Aktienstruktur bei Meta – ein Mann ist der Profiteur [www.op-online.de]
Mark Zuckerberg threatens to leave California over billionaire tax as Meta approves unusual deal [www.thecooldown.com]
Neue Aktienstruktur bei Meta – ein Mann ist der Profiteur [www.tz.de]
Meta CEO Mark Zuckerberg Threatens to Leave California if Wealth Tax Passes [www.breitbart.com]