Meta Plans $95 Billion Stock Sale Structure
Meta has outlined a plan to raise approximately $95 billion through a mix of common stock, convertible preferred shares, and open market sales.
Approximately $22.5 billion of the planned sales will come from selling Class A common stock. Another $12.5 billion will be raised through depositary shares representing one-twentieth of a new preferred share. These depositary shares will automatically convert into common stock in August 2029 unless converted earlier. The remaining $60 billion will come from ongoing open market sales once new Class C shares start trading.
The new Class C shares carry no voting rights. Meta currently has Class A shares with one vote each and Class B shares with ten votes each. Entities controlled by CEO Mark Zuckerberg hold most of the Class B shares. This structure allows Meta to raise money without diluting Mark Zuckerberg's control.
Nvidia, AMD, and Broadcom have expressed non-binding interest in buying up to $5 billion in Meta stock.
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