Meta approved a new non-voting Class C stock, with a one-for-one dividend on every share
The board says the shares would fund growth, pay staff and finance deals, while Zuckerberg keeps his voting control.
In brief
Meta adds a 2-for-1 style share, with no votes
Meta's board approved Class C stock with no voting rights. Each current share gets one, like a two-for-one split. Zuckerberg keeps his voting control. No sale has been announced.
Meta's board approved a new class of publicly listed stock on October 21, 2026. It is called Class C common stock, and it carries no voting rights. The news came in a Form 8-K filed with the SEC, alongside the company's third-quarter results.
How the shares will be handed out
Meta plans to distribute the shares as a one-time dividend. Each Class A or Class B share gets one Class C share. The company says this works like a two-for-one split, and that voting power stays where it is (per Investing.com).
Why Meta wants them
The stated purposes are funding growth, employee pay and acquisitions. Reuters and others add that the shares would let Meta raise money without diluting Mark Zuckerberg's voting control. Imagine a company selling slices of a cake but never giving away a say in how it is baked. That is the idea.
The timing is not settled across sources
Investing.com gives an effective date of January 19, 2027. Reuters says only January. InvestingLive says trading is expected from late January.
The quarter in numbers
Revenue was $64.6 billion, up 26%. Operating income fell 37% to about $13 billion because of a $9.9 billion legal charge. Net income is $9.9 billion according to Unite.AI, but $9.8 billion according to Digital Today, which cites the Wall Street Journal.
Reuters also reports that Meta narrowed its full-year capital spending guidance to $135-145 billion, from $130-145 billion. Capital spending means money spent on things like data centers and equipment.
Zuckerberg's side of the deal
Filings show a Founder Alignment Agreement with Zuckerberg. It covers his sales of Class C stock. CNBC reports that he committed to staying in California for eight years as part of the arrangement.
Meta has not announced any specific sale of the new shares. The exact trading date differs by source, and the net income figure is reported two ways. The sources do not say how much money the shares could raise.