Zuckerberg makes deal with Meta to help him pay billionaire tax if it passes

Key Points:

• Mark Zuckerberg reached an agreement with Meta's board to create a new class of non-voting shares that he can sell to pay a proposed California billionaire wealth tax without losing majority ownership of the company.
• The proposed tax, on the November ballot, would impose a one-time 5% levy on Californians with net worths over $1 billion, potentially costing Zuckerberg over $11 billion based on his estimated $220 billion net worth.
• Zuckerberg committed to remaining in California for at least eight years unless unforeseen circumstances arise, countering concerns that the tax would drive billionaires out of the state.
• Meta stated that the new shares would also support capital raising for AI investments and employee compensation, while Zuckerberg would continue to take a $1 annual salary and effectively pay to serve as CEO if the tax passes.
• The wealth tax faces opposition from wealthy Californians and political figures like Gov. Gavin Newsom, with billionaires like Google co-founders Sergey Brin and Larry Page funding efforts to defeat it, while supporters argue it ensures the ultra-rich pay their fair share.