Business · Companies · 4 hrs ago
Meta plans non-voting shares to help fund its AI expansion
Meta plans to create non-voting shares and distribute them to its existing shareholders as a stock dividend.
The shares would not give their owners a vote on company decisions, and Meta says they could be used to raise money, pay employees and fund acquisitions.
The plan is meant to give Meta more funding options for its AI expansion while preserving the voting power of existing Class A and B shareholders.
Meta is investing heavily in AI products, including its Muse models and personal agents.
More than 10 million people in the US and Canada have set up Muse personal agents, according to CEO Mark Zuckerberg.
Meta reported $64 billion in revenue for the quarter, up 26% from a year earlier, while its costs and expenses rose 68%.
The company has not said when the new shares will be issued; it also faces ongoing legal and regulatory scrutiny, including youth-related trials scheduled in the United States in the coming months.
Meta plans to create a new class of non-voting shares to help finance its artificial intelligence expansion.
The company says the shares could also support acquisitions, employee compensation and other corporate purposes.
The shares are to be distributed to existing shareholders, while preserving the voting power of current Class A and B shareholders.
Meta said trading in the new shares will begin in 2027.
The announcement came as Meta reported third-quarter revenue of $64 billion, up 26% from a year earlier.
- Who
- Meta plans to issue the new shares. Existing shareholders are to receive them.
- What
- The company is creating a non-voting stock class to help raise capital and fund its AI expansion.
- When
- Meta announced the plan on October 21, 2026. Trading is expected to begin in 2027.
- Where
- Not stated
- Why
- Meta says the shares will expand its funding options for investment, acquisitions, employee compensation and other corporate purposes while preserving existing shareholders’ voting power.
This story does not have two clearly opposing sides.
Meta launched its AI agent, Muse, according to The Verge.
Meta announced plans for a new class of non-voting shares in its third-quarter earnings report.
Trading in the new shares is expected to begin.
- New shares
- Non-voting Class C stock
- Distribution
- To existing shareholders
- Trading begins
- 2027
- Third-quarter revenue
- $64 billion, up 26% year over year
- Capital expenditures
- $34.91 billion in the third quarter
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What people are saying
create a new class of non-voting capital stock, which will be distributed to all existing shareholders through a stock dividend.
expand our funding tools and give us flexibility to invest behind the unprecedented momentum we’re seeing across every part of our business driven by AI.
The creation of the Class C common stock will continue the founder-led model that has driven the company's success since its inception.