Key facts
- Meta's board established a Special Committee that determined Zuckerberg is the best fit to lead the company.
- The new stock class is intended to allow Meta to finance its growth.
- Meta reported $34.91 billion in third-quarter capital expenditures.
- The new stock will be distributed to existing shareholders.
Meta Platforms has announced the creation of a new class of non-voting stock, aiming to maintain Mark Zuckerberg's control and support the company's future growth. The decision, detailed in the company's third-quarter earnings report, is designed to preserve the "founder-led model" that has guided Meta since its inception.
A Special Committee formed by Meta's board concluded that Zuckerberg's creative vision and management abilities make him the ideal leader for the company's future. The introduction of the Class C common stock is also intended to provide Meta with the means to finance its expansion, particularly in areas like artificial intelligence and the necessary data center infrastructure.
Meta reported capital expenditures of $34.91 billion in the third quarter. According to CFO Susan Li, the new stock will be distributed to existing shareholders, effectively acting as a two-for-one stock split. This strategy mirrors actions taken by other tech companies, such as Google in 2012, to access capital without diluting a CEO's voting power.