Zuckerberg's voting power in Meta

Mark Zuckerberg owns 13.4 percent of Meta's capital but controls more than 60 percent of its voting rights. This is due to the company's share structure, which gives him significant influence over major decisions despite his minority ownership.

Meta's AI financing plans

Meta is preparing a large-scale financing operation to fund its ambitions in artificial intelligence, potentially raising up to 97.5 billion dollars. This move raises questions about how to bring in new investors without weakening Zuckerberg's control over the company.

Meta's dual share structure

Meta currently has two types of shares: class A shares, which give one vote each, and class B shares, which give ten votes. Zuckerberg's class B shares give him a voting power of 60.6 percent, even though he owns only 13.4 percent of the capital. This allows him to control key decisions, such as the election of the board of directors.

Introduction of class C shares

On October 21, Meta announced the creation of a third type of share called class C. These shares will not grant voting rights, except for exceptions provided by law. Shareholders will receive one class C share for each class A or B share they already hold, without gaining additional voting power.

Purpose of class C shares

Meta plans to issue new class C shares to raise capital, compensate employees, or finance acquisitions. New investors can gain economic participation without voting rights. Zuckerberg can also sell his class C shares without losing his voting power, ensuring his control remains intact even as his economic stake may decrease.

Long-term control assurance

According to estimates, Meta could raise up to 700 billion dollars in common shares over several years without Zuckerberg losing his voting majority. Zuckerberg has stated he would not support fundraising that reduces his voting power, and class C shares provide an additional layer of security for his control.