Meta Creates New Class C Stock To Fund AI Ambitions And Keep Zuckerberg In Charge

Meta is creating a new class of nonvoting stock that could give the company another way to fund its massive AI ambitions without diluting Mark Zuckerberg’s voting control. The board approved the Class C stock alongside third-quarter results Wednesday, when Meta reported revenue rose 26% to $64.60 billion. The company says raising capital is the first purpose of the new shares.

While the mechanics resemble a stock split, the new shares serve a broader purpose. Once the charter change takes effect Jan. 19, 2027, shareholders will receive one Class C share for each Class A or Class B share they own, with Meta expecting the Class A price to reflect a two-for-one split. The board will set the payment date later.

Why Meta Is Creating The New Shares

Meta’s release lists three reasons for the new class. The first is raising capital, compensating employees and pursuing potential acquisitions, while the third is “ensuring Founder and CEO Mark Zuckerberg continues to lead Meta into the next era.”

“The scale of investment required to compete, sustain growth, expand infrastructure, and pursue new strategic initiatives amidst the AI transformation taking place in the industry is significant.”

The information statement Meta filed with the SEC is more direct. It says the company “expects to use shares of Class C common stock to conduct equity offerings from time to time in the future, subject to market conditions.”

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Because the new shares carry no votes, Meta can sell them, pay engineers with them or use them to buy companies without diluting anyone’s voting power. Zuckerberg and entities tied to him hold about 56.1% of the vote, and new Class C shares leave that untouched. Meta now has a currency it can spend on the AI build without loosening control of the company.