Meta strikes deal to keep Zuckerberg in California after wealth tax concerns
Reuters • • business
Key Points:
- Meta will grant Mark Zuckerberg non-voting shares that he can sell to cover a potential multi-billion-dollar tax bill if California's Proposition 40, a proposed one-time 5% tax on billionaires, passes.
- Zuckerberg has committed to remaining a resident of California or wherever Meta's headquarters are located for eight years to maintain leadership continuity.
- Proposition 40 targets billionaires in California, home to about 250 billionaires worth over $2 trillion, but its passage is uncertain according to political analysts.
- Zuckerberg, with a net worth of approximately $240 billion, can immediately sell 20% of new Class C non-voting shares, representing 10% of his economic stake, to pay potential taxes without losing voting control.
- Meta plans a two-for-one stock split in January 2027 by issuing a new class of non-voting Class C shares to fund acquisitions and retain talent, anticipating the need to raise hundreds of billions for AI growth starting as early as fall 2026.
