Meta plans new non-voting shares to fund AI spending

In short: Meta says it will create a new class of non-voting shares so it can raise money for AI without reducing Mark Zuckerberg’s control.

What happened

Meta plans to create a new type of stock called non-voting shares. These shares can be bought and sold like regular shares, but they do not come with voting rights, meaning holders do not get a say in company decisions.

Meta says this would let it sell more shares to fund its growing spending on artificial intelligence. The company said the amount of investment needed to compete and build more infrastructure is significant.

Meta plans to hand out the new shares to current shareholders through a two-for-one stock split. That means each existing share would be split into two pieces (like cutting a pizza into more slices), and the new non-voting shares are expected to start trading in January.

Zuckerberg currently controls about 61 percent of Meta’s voting power through “super-voting” shares, which carry extra votes. Meta said the new structure is meant to keep its “founder-led model” in place while still allowing fundraising.

Meta also reported strong recent financial results. Revenue rose 26 percent year over year to $64.6 billion in the third quarter, and shares rose 3 percent in after-hours trading. The company said it spent $35 billion on capital expenditures in the quarter and forecast up to $145 billion for the full year, and it reported negative $2.1 billion in free cash flow.

Why it matters

For everyday investors, this is a reminder that not all shares give the same level of influence. You can own more of the company on paper, but still have little or no voting power, while Meta raises money to pay for expensive AI projects.

Source: Financial Times