Meta Found a Way to Raise Money Without Handing Out More Votes

Meta Platforms will distribute one non-voting Class C share for each share investors hold, effective Jan. 19, 2027, saying the new stock can be sold to raise funds without increasing voting power. The plan accompanied third-quarter results that showed negative free cash flow of $2.12 billion, with capital spending of $34.91 billion exceeding operating cash flow of $32.79 billion. An independent directors’ committee recommended the class, and CEO Mark Zuckerberg signed an Oct. 20 Founder Alignment Agreement under which only 20% of his and certain transferees’ Class C shares can be sold freely; generally, sales of the other 80% require matching sales or conversions of voting stock. Meta said the dividend will not change any shareholder’s voting power.