Meta, the parent company of social media giants like Facebook and Instagram, would have explored options to change its legal house from Delaware to Texas.
The information was initially reported by The Wall Street JournalCiting people who have familiarized the issue.
Key points:
- Meta had discussions with Texas officials on the potential movement of her incorporation. The company also examines other states for this legal change, the Wsj reported.
- With Mark Zuckerberg as majority action, Texas is considered favorable to companies with similar structures.
- Delaware is home to most of fortune companies 500 due to its judicial system adapted to businesses. However, recent judicial decisions have frustrated the executives and control shareholders.
- Elon Musk moved Tesla and SpaceX to Texas and Neuralink to Nevada after a decision of the Delaware Court canceled the Tesla Pay 2018 package from the CEO after all its ambitious milestones were reached.
🚨Alert: Meta is preparing to leave Delaware and integrate into another state!
According to sources, the company has already spoken with Texas officials to move the company’s legal residence.
Zuckerberg is not the first to make this movement, and will certainly not be the last.… pic.twitter.com/98a1k7tqde
– Leave Delaware (@levevedelaware) January 31, 2025
Recent developments:
- Meta is not the only technological company to leave Delaware. Dropbox also announced that he was moving his incorporation from Delaware to Nevada.
- In a securities file, Dropbox noted that he had obtained the approval of the majority shareholders to move his incorporation of Delaware to Nevada.
- “The shareholders of the company holding at least one majority of the voting power of our stock circulation stocks entitled vote, adopted solutions by written consent instead of an assembly of shareholders to approve the reincorporation of the company ‘State of Delaware to the state of Nevada by conversion “,” Dropbox noted in its deposit.
Dropbox also leaves Delaware. It happens. pic.twitter.com/sfbq5jpo39
– Robert Anderson (@Profrobanderson) January 31, 2025
Wider context:
- Texas attracts companies by creating specialized courts for disputes, a movement followed by more than two dozen states.
- A Meta spokesman confirmed that he was not planned to move the headquarters of California, but refused to comment more on reincorporation discussions.
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