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

Meta Platforms will give shareholders one non-voting Class C share for every share they own. The new class gives Meta stock it can sell to raise money without diluting voting power. The plan arrived with third-quarter results showing free cash flow of negative $2.12 billion. Capital spending of $34.91 billion outpaced the cash Meta’s operations generated. A Spending Bill Bigger Than the Cash Coming In A special committee of independent directors recommended the new stock. It gave three main reasons. Funding: The stock can support capital raising, employee pay, potential acquisitions, and other corporate purposes. The committee tied this to the scale of investment needed to compete in AI. Long-term value: Meta stock has gained over 1,700% since its IPO, versus about 495% for the S&P 500.

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