Meta creates non-voting shares to fund the construction of AI; Zuckerberg retains control
2026-10-23 03:08:30
According to CoinMeta, as reported by Decrypt, the board of directors of Meta has approved a new class of non-voting shares. Holders of Class A and Class B shares will receive one new share for each share they hold. This plan was disclosed on Wednesday along with the third-quarter earnings, and Class C shares will take effect on January 19, 2027. The one-for-one dividend equivalent to a two-for-one stock split means that this will not change anyone's voting rights, as Class C shares typically do not carry voting rights. Meta states that these shares can be sold for cash or used as payment and acquisition currency without weakening Zuckerberg's control. According to information submitted by SEC, Zuckerberg held approximately 60.6% of the voting rights on October 1, while economic interests accounted for 13.4%. As per documents from SEC, advisors to Moelis informed the board's special committee that Meta could raise about $70 billion in equity financing over the next few years without affecting Zuckerberg's voting rights. Management also stated that long-term projections indicate a need to raise “hundreds of billions of dollars” in the coming years.
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Source:Decrypt
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