Meta announced on October 21 that it created a new non-voting Class C common stock to help Mark Zuckerberg pay potential tax liability under California Proposition 40, if enacted, without affecting his majority voting control. Zuckerberg can immediately sell or transfer up to 20% of the Class C shares he receives, which the company said represents 10% of his economic stake. Proposition 40 would impose a one-time 5% tax on California billionaires, with 90% of revenue going to health care; the vote is on Nov. 3, and if passed, Zuckerberg could owe around $11.2 billion based on a net worth of just over $224 billion. Meta said Zuckerberg was evaluating relocating his primary residence outside California, and a Special Committee believed it was critically important for him to remain based in the state to manage the company in person. All shareholders will receive a dividend of one Class C share for each Class A and Class B share beginning January 2027.
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META
▼ Likely negativeMeta Platforms
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.9T |
| Close on 10/22/2026 | 648.91 |
| Change that session | -6.97% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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