Meta strikes deal with Zuckerberg to protect him from California wealth tax

Meta has agreed a corporate arrangement to shield Mark Zuckerberg from a proposed California one‑off billionaire tax, Proposition 40, by creating a new class of non‑voting shares. The company will implement a two‑for‑one stock split for all shareholders to generate Class C shares Zuckerberg can sell to cover a potential 5% wealth levy without surrendering control. In exchange he has committed to remain a resident of California, or wherever Meta’s headquarters are located, for eight years; Zuckerberg had signalled he might move because the levy could force sales of voting stock. The measure, which would target roughly 250 state billionaires, has attracted heavy opposition funding from tech figures and remains behind in polls.

The announcement came alongside Meta’s quarterly results and legal setbacks. Revenue rose 26% to $64.6bn, beating estimates, while profit dropped 37% to $13bn after a $9.9bn charge tied to a landmark child‑protection lawsuit. A separate New Mexico court ordered a $25bn payment for misleading handling of Facebook user data. Headcount fell to 66,775, down 15% year‑on‑year. The share restructuring preserves Zuckerberg’s voting control while providing liquidity to meet a potential extraordinary tax obligation.