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Zuckerberg planned to sell his home, so Meta built him a wealth tax deal
The Next Web • • business
Key Points:
- Meta is creating new Class C shares that Mark Zuckerberg can sell to cover potential California billionaire taxes, with Zuckerberg committing to remain in California or wherever Meta is based for eight years while leading the company.
- Each Meta shareholder will receive one new Class C share per existing share starting in January 2027; Zuckerberg can sell 20% of his new Class C shares immediately, with the rest released gradually as long as he stays in charge.
- The stock issuance acts like a two-for-one split, diluting Zuckerberg’s voting power from 60.6% to about 53% if he sells shares to pay the tax, though it also allows Meta to raise significant capital without diluting his control.
- The special committee overseeing the deal experienced contentious negotiations, with Zuckerberg initially proposing an excessive share issuance and threatening to move out of California due to the proposed wealth tax.
- California’s Proposition 40, a one-time 5% tax on billionaires, faces a November 3 vote amid heavy spending from both supporters and opponents, with public opinion nearly evenly split according to recent polls.
