Zuckerberg strikes a deal with Meta to help pay a California billionaire tax if he stays eight years
ABC News reported that Mark Zuckerberg made a deal with Meta to help him pay a proposed billionaire tax that is on the California ballot. CBS News reported that Zuckerberg agreed to remain in California for eight years as part of a board-approved plan to create new stock, and that he had threatened to leave the state over the wealth tax. The Los Angeles Times reported that Meta's board struck a deal that eased Zuckerberg's concern about losing control of the company if the tax passed. CNBC reported that the deal adds fuel to the wealth tax debate ahead of the Nov. 3 election.
The Los Angeles Times reported that Zuckerberg worried the tax could reduce his control of Meta, and new shares he can sell to pay it are a way to raise cash for the bill. A residency promise ties the founder to California, where a tax on billionaires would apply to people who live in the state.
The deal is a rare case in which a company's board is asked to support a founder's personal tax planning. If you own Meta through an index fund, you hold part of a company whose new stock class could change share counts. California voters decide the tax itself on Nov. 3.
Supporters of the board's plan say it keeps Zuckerberg and his leadership of Meta in California. CBS News reported that he had threatened to leave the state, and on this view the agreement removes that risk for the company and its shareholders.
Critics argue that a public company is helping to protect a billionaire from a tax. CNBC reported that the deal adds fuel to the wealth tax debate, and on this view the arrangement shows how the wealthiest taxpayers can structure their way around a tax that voters may approve.
Confirmed: Meta's board approved a plan tied to Zuckerberg staying in California for eight years, and the tax measure is on the ballot. Not confirmed: whether voters will pass the tax or what Zuckerberg would owe. Watch the Nov. 3 vote and any shareholder reaction to the new stock class.
DailyDrop U.S. No. 19 · October 23, 2026