Meta has struck a deal allowing CEO Mark Zuckerberg to sell shares without losing control, securing his commitment to remain in California even if a proposed wealth tax passes. The agreement involves a two-for-one stock split creating a new class of non-voting shares, enabling Zuckerberg to raise cash while retaining majority control. He can immediately sell a fifth of the new shares to cover potential taxes.
The deal follows negotiations with Meta's board and addresses concerns over a 5% wealth tax on residents with over $1 billion in assets, set for a November 3 vote. Zuckerberg, the world's fifth richest person with $246bn, has pledged to stay in California for eight years. The restructuring also supports Meta's AI ambitions, allowing future share sales to fund its "hundreds of billions of dollars" in AI investments without diluting his 61% voting stake through super-voting shares.
Source: Financial Times Companies · Summarized by HeadlinesBriefing