Meta creates non-voting Class C stock, a move tied to Zuckerberg's concerns over California's billionaire tax

The new shares could let Zuckerberg raise cash for a possible tax bill while keeping his voting control of the company.

Meta's board has approved a non-voting Class C common stock that takes effect in January, which the company says will fund capital raising, employee pay and acquisitions, including AI spending, while keeping Mark Zuckerberg's voting control. According to reporting based on a Meta SEC filing, the stock was also tied to Zuckerberg's concerns about California's proposed one-time 5% billionaire wealth tax, Proposition 40. Under the plan, shareholders receive one Class C share for each Class A or Class B share they hold, and Zuckerberg could sell up to 20% of his Class C shares, about 10% of his total economic stake, to cover a possible tax bill without affecting his voting control. The tax could cost him as much as $11 billion, and backers say the measure could raise up to $100 billion over five years for healthcare, food assistance and education.