Meta strikes deal to protect Zuckerberg from California billionaire tax

Meta is creating a new class of non‑voting Class C shares so Mark Zuckerberg can sell stock to pay a looming California billionaire wealth tax without reducing his 61% voting control. The restructure is presented as preserving the founder-led model and providing extra capital to fuel AI investment. As part of the plan, Zuckerberg has pledged to remain a California resident for eight years after threatening to relocate in response to Proposition 40, a ballot measure that would impose a one‑time 5% tax on billionaires’ accumulated wealth to fund healthcare, food assistance and public education.

Separately, Meta faces a landmark legal hit: a New Mexico judge ordered a $25 billion penalty for role in the Cambridge Analytica data harvesting scandal, finding roughly 43 million violations of state consumer protection law tied to improper access to up to 87 million users’ data. Jurors concluded many company statements about data access and content policies were misleading; New Mexico’s statute allows fines up to $5,000 per violation with proceeds to schools. Meta had urged a cap around $3.45 billion, says it will appeal and maintains it does not sell user data. The ruling adds to recent penalties, including a $375 million civil penalty in August and settlements over harms to children, intensifying legal and reputational pressure on the company.