By Carlos M\u00e9ndez <\/p>\n
Oct 21 (Reuters) – Meta Platforms has struck a deal with Mark Zuckerberg to keep him living in California after the CEO warned he was \u200cconsidering leaving the state that houses the company’s headquarters if voters pass a \u200cwealth tax proposal next month. <\/p>\n
Under the deal, Zuckerberg will get non-voting shares he can sell to potentially foot \u200ba multi-billion-dollar tax bill in the event the proposal is approved, in exchange for a commitment to remain a resident of California, or wherever Meta maintains its headquarters, for eight years, Meta said on Wednesday. <\/p>\n
Zuckerberg, the world’s sixth richest person according to Forbes, told Meta he was \u200cconsidering moving his primary residence \u2060outside California because Proposition 40, a ballot measure dubbed the “California wealth tax”, could expose him to a massive tax liability, potentially forcing him to \u2060sell voting shares to pay it. <\/p>\n
Proposition 40, which asks Californians whether to impose a one-time 5% tax on the state’s billionaires, is far from certain to pass, political analysts say. The state \u200bis \u200bhome to as many as 250 billionaires collectively \u200bworth upwards of $2 trillion. <\/p>\n
Zuckerberg, who has \u200ca net worth of about $240 billion, can immediately sell 20% of the Class C shares he receives, representing 10% of his overall economic stake in the company, allowing him to pay a potential tax bill without losing voting control. <\/p>\n
The company said on Wednesday it will issue a new class of non-voting Class C common stock in January 2027, effectively resulting \u200cin a two-for-one split, to fund acquisitions and \u200bretain top talent while maintaining Zuckerberg’s control. <\/p>\n
Meta’s long-term forecasts, \u200bas described in the filing, showed \u200bit would need to raise “hundreds of billions of dollars” over several \u200cyears, beginning as early as fall 2026, \u200bas it expects to \u200bneed capital to finance its AI-related growth plan. <\/p>\n
The parent of Facebook and Instagram said a special committee of its board concluded it was “critically important” that Zuckerberg remain in \u200ba leadership role and continue \u200cto manage the company from its California headquarters, particularly during what it described \u200bas “unprecedented challenge and competition in our industry” driven by AI<\/a>. <\/p>\n (Reporting by Carlos \u200bM\u00e9ndez in Mexico City; Editing by Subhranshu Sahu) <\/p>\n","protected":false},"excerpt":{"rendered":"By Carlos M\u00e9ndez Oct 21 (Reuters) – Meta Platforms has struck a deal with Mark Zuckerberg to keep…\n","protected":false},"author":2,"featured_media":503894,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[37356,387,3887,7,9,8,383,9180,16281,3127,37357,9472,16282,31007,37358,15630,37359,388,8523,7037,16283,16284,17075,37360,1747,37361],"class_list":["post-503893","post","type-post","status-publish","format-standard","has-post-thumbnail","category-california","tag-401k","tag-business","tag-business-news","tag-california","tag-california-headlines","tag-california-news","tag-economy","tag-finance","tag-financial-information","tag-investing","tag-investment-tools","tag-investor","tag-market-news","tag-mortgage","tag-mutual-funds","tag-personal-finance","tag-quote","tag-real-estate","tag-retirement","tag-stock","tag-stock-research","tag-stock-valuation","tag-stocks","tag-suze-orman","tag-tax","tag-track-portfolio"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/503893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=503893"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/503893\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/503894"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=503893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=503893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=503893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}