Meta $META Platforms said its board approved Class C shares, a new stock category without voting rights, which the company could tap to help pay for its artificial intelligence spending, according to a filing on Wednesday, as first reported by Semafor and relayed by Bloomberg.
Meta will distribute a dividend of one Class C share for each share an investor holds, the company said. It expects the dividend to affect the market price of its Class A stock the same way a two-for-one stock split would. The new shares are set to take effect in January, and the board will pick the dividend date.
Meta said it will use the new stock to raise capital, pay employees and pursue possible acquisitions, all while leaving the control held by CEO Mark Zuckerberg intact.
In its quarterly earnings report on Wednesday, Meta said it expects 2026 capital expenditures of $135 billion to $145 billion. The company raised the bottom of that range from $130 billion.
Meta stock climbed roughly 6.8% in extended trading Wednesday. Through Wednesday's close in New York, the shares were up roughly 6% for the year.
The dividend is tied to a deal in which Meta entered into an agreement with Zuckerberg on Oct. 19 committing him to remain a California resident for eight years. Zuckerberg had told the board he was evaluating a move out of the state over a proposed wealth tax. The charter change creating the new class takes effect Jan. 19, 2027, and the board declared a one-time dividend of one Class C share for each Class A and Class B share.
Meta said Zuckerberg may sell 20% of his Class C allotment to cover any bill from California Proposition 40. For each of the remaining 80% of his Class C shares that he sells, he must sell one Class A or Class B share or convert one Class B share into Class A. Meta said that would not affect his majority voting control. Proposition 40 is on the Nov. 3 ballot and would impose a single 5% levy on the wealth of California residents who hold at least $1 billion in assets.
Meta said the new stock gives it a way to raise capital without diluting voting power. Its long-range forecasts point to capital needs of hundreds of billions of dollars over several years, starting as early as the autumn of 2026, the filing says.
Meta has paid for its heavy spending by borrowing and halting stock buybacks. Its long-term debt rose by about $25 billion in the first half of 2026, to $83.7 billion.
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