Meta's Non-Voting Stock Insulates Zuckerberg's Voting Rights

Dow Jones10-24 00:28

1228 ET - Meta's decision to create a new class of non-voting stock is likely a gambit to protect CEO Mark Zuckerberg's voting rights ahead of California's proposed one-time billionaire tax, Oppenheimer analysts write in a note. Assuming Zuckerberg is on the hook to raise $15 billion to pay the tax, and Meta needs to raise another $150 billion over time to fund its AI infrastructure, his voting stake could dilute from 60.6% to 56.3%, they say. The dilution would be much less if Meta does not issue additional equity, suggesting to the analysts that equity issuances are on the horizon. "While still greater than 50%, creating non-voting stock creates a buffer if the company had to rely on a greater mix of equity vs. debt," they write.

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