Meta agrees new share deal to keep Zuckerberg in California

New shares for potential tax bill

The social media company revealed that Zuckerberg will receive a new class of non-voting shares through a two-for-one stock split. He can sell these additional Class C shares to cover a possible multibillion-dollar liability if voters approve Proposition 40 early next month. This arrangement allows him to pay the tax without diluting his control over the business.

Commitment to stay for eight years

In exchange for the new equity, Zuckerberg is committed to remain a resident of California or wherever Meta maintains its base for eight years. The proposed measure would impose a one-time 5% tax on roughly 250 billionaires living in the state. Zuckerberg previously told the board he was considering moving his primary residence because the tax could force him to sell voting shares.