Meta strikes deal with Zuckerberg to protect him from California wealth tax
Summary
Meta and its CEO, Mark Zuckerberg, have made an agreement to protect him from a possible new California tax on billionaires. Meta will create new shares that Zuckerberg can sell to help pay the tax, while he agrees to stay living in California for eight years.Key Facts
- California voters will decide on Proposition 40, a one-time 5% tax on about 250 billionaires in the state.
- Zuckerberg is worth $239 billion and was thinking about moving out of California because of the possible tax.
- Meta will issue new Class C non-voting shares to Zuckerberg, which he can sell to pay any future tax bill without losing control of the company.
- Zuckerberg agrees to remain a California resident, or live where Meta is based, for at least eight years.
- Prop 40 currently lacks enough voter support, and some tech billionaires are spending money to oppose it.
- Meta reported a 26% revenue increase to $64.6 billion last quarter but profits dropped by 37% due to a $9.9 billion legal charge.
- A judge in New Mexico ordered Meta to pay $25 billion over misleading users about Facebook data.
- Meta reduced its workforce by 15% in the past year, now having 66,775 employees.
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