Meta Strikes Agreement to Keep Zuckerberg in California as Billionaire Wealth Tax Debate Intensifies

Meta Strikes Eight-Year Deal to Keep Zuckerberg in California Amid Proposed Billionaire Tax

Meta Platforms has reached an agreement with chief executive Mark Zuckerberg to secure his residency in California for the next eight years, following concerns that he could leave the state over a proposed tax on billionaires.

Under the arrangement announced on Wednesday, Zuckerberg will receive non-voting shares that he can sell to cover a potential multi-billion-dollar tax liability if voters approve the proposal. The deal is intended to help him raise the necessary funds without surrendering his voting control of Meta, the parent company of Facebook and Instagram.

As part of the agreement, Zuckerberg has committed to maintaining residency in California, or in the location of Meta’s headquarters, for eight years.

Proposed Billionaire Tax at the Centre of Dispute
The agreement comes amid a debate over Proposition 40, a ballot measure proposing a one-time 5% tax on billionaires in California. The measure is scheduled to go before voters next month, though its approval remains uncertain.

Zuckerberg, whose estimated net worth stands at approximately $240 billion, could face a substantial tax bill if the proposal passes. The potential levy could require him to pay billions of dollars.

California is home to an estimated 250 billionaires, whose combined wealth exceeds $2 trillion.

Under the deal, Zuckerberg will have the option to immediately sell 20% of the Class C shares allocated to him. These shares represent 10% of his overall economic stake in Meta, enabling him to raise cash while retaining his voting power in the company.

Meta to Introduce New Class of Shares in 2027
Meta plans to introduce a new class of non-voting Class C common stock in January 2027. The move will effectively create a two-for-one stock split and is intended to support acquisitions and help the company retain key employees while maintaining Zuckerberg’s control.

Meta’s board has described keeping Zuckerberg in California as “critically important” to the company, particularly as competition in artificial intelligence continues to intensify.

The company’s long-term financial projections indicate that it could need to raise hundreds of billions of dollars over several years to finance its AI ambitions, with fundraising potentially beginning as early as autumn 2026.

The agreement comes as Meta prepares for substantial investment in AI infrastructure and development while seeking to preserve its leadership structure and Zuckerberg’s voting control.