Meta is creating a new class of non-voting Class C shares under an agreement with co-founder and CEO Mark Zuckerberg, and its stock fell 6.5% in early trading Thursday. The deal came after Zuckerberg said he was considering moving his residence out of California in response to Proposition 40, a proposed one-time wealth tax that could leave him with a multibillion-dollar bill. In exchange, he committed to remain resident in California, or where Meta is headquartered, for eight years. He can immediately sell 20% of the Class C shares he receives, about 10% of his overall economic stake, while the remaining 80% is tied to converting voting shares and is released by 2.5% each qualifying quarter. For Meta, Class C stock becomes a financing tool for AI infrastructure, acquisitions and employee compensation, without weakening Zuckerberg’s voting control.
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Related tickers and likely impact
META
• NeutralMeta Platforms
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.9T |
| Close on 10/21/2026 | 698.43 |
| Change that session | +0.60% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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