Zuckerberg told Meta directors he might leave California, where he could lose billions to a wealth tax. Meta answered with a new class of stock
Source: Fortune ·
Meta could have raised about $700 billion in equity capital before Zuckerberg lost majority control, a filing shows. The new share class will raise money without diluting him—and allow him to foot a potential bill in California.
From the source
Meta CEO Mark Zuckerberg intends to maintain control over the company he founded in 2004 and a new class of stock will help him do just that. On Wednesday as Meta released third quarter earnings results, the company announced that it would issue a new share class of Class C stock. The share class, which is technically a one-for-one stock dividend of new Class C shares, will be distributed to all shareholders. It was conceived following months of extensive negotiation that grew contentious at times between Zuckerberg and board members, including DoorDash CEO Tony Xu, Ambassador Robert Kimmitt, and ex-Microsoft executive Charles Songhurst. Xu disclosed his personal friendship with Zuckerberg but said it wouldn’t impair his judgement. At one point, the committee even talked about resigning if they couldn’t come to a resolution. According to a Meta filing with the Securities & Exchange Commission, Zuckerberg wanted to be able to maintain his voting control, meet his pledges to fund the…