(BlocMedia · James Jung Reporter)
According to the new announcement released by Meta on June 22, the company will issue a new Class C share to secure funding for its AI business expansion while maintaining CEO Mark Zuckerberg’s control of management and addressing California’s corporate tax (income tax).

Through the Class C structure, Zuckerberg can issue new shares that are cash‑convertible without owning the existing 13% of common stock, yet he retains control over the existing Class A and B shares which have a voting ratio of at least 60%. Meta currently owns about 13% of its total shares, and with this arrangement there is a risk it could reduce the overall voting ratio to as low as 53%.

California imposes a one‑time 5% income tax (equivalent to 40% of the payroll) on companies with assets over $1 billion; this figure is determined by asset value and business size as of January 1, 2026. Meta acknowledges that it may need to sell existing shares to meet this tax burden, which could lower its current voting ratio.

Following the announcement, Meta will allocate Class C shares to existing shareholders; Zuckerberg has been granted permission to cash‑convert up to 20% of the initial allocation. The new shares issued through the class have no voting rights, so control based on existing Class A and B shares remains unchanged.

Zuckerberg states that in the next eight years he will continue operating Meta’s headquarters in its current region, proposing a plan to reduce tax burden without major compensation packages. This restructuring takes effect regardless of the outcome of the tax‑relief vote, allowing Meta to secure funding for AI expansion while preserving Zuckerberg’s control and cash‑convertibility.

Meta’s chief financial officer (CFO) explained that the new structure expands its ability to raise capital and offers flexibility to invest in the growth led by AI. However, from a corporate governance standpoint, adding non‑voting shares to regular shareholders raises concerns that the economic benefit of expanded funding could widen the gap between existing strong control and voting rights.