Delaware’s reputation as the country’s most corporate-friendly state has taken another hit.
Roblox is now the latest company to propose leaving Delaware, according to a note it sent to its shareholders this week. Numerous other major corporations — like Dropbox and Bill Ackerman’s Pershing Square Capital Management — have also said in recent months they planned to leave Delaware. Meta, too, is rumored to be considering a move.
The trend began with Elon Musk, who moved Tesla and SpaceX out of Delaware last year after a Delaware judge sided with some Tesla shareholders to block Musk’s $55 billion pay package.
In the note, Roblox’s board of directors, who have already approved the move, urged shareholders to support the proposal.
“We believe that Nevada’s corporate law framework and statutory regime aligns with Roblox’s culture of innovation, values, and mission to connect the world with civility and optimism,” the company said in its note to shareholders. “It also allows us to continue to build shareholder value by providing a supportive, predictable environment.”
The ongoing exodus is devastating for Delaware, which has long been considered the country’s most business-friendly state. According to Delaware’s government, the state is home to some 2.2 million registered entities, which contribute millions to its revenue. In 2024, more than 80% of IPOs in the United States were incorporated in Delaware.
Delaware Gov. Matt Meyer has moved to make changes to address concerns.
“The fact is Delaware is the best location in the world for a company to incorporate and that’s thanks to our legal expertise dating back to 1792,” Meyer told Business Insider in February. “But let’s be clear: If any entity leaves Delaware, we’re going to work to win them back.”
Meyer said the balance of shareholder and management rights is one of the areas the state intended to address. “We’re cognizant that there may be some things that need to change. We’re going to work on them,” he said.
On March 25, the governor approved a number of proposed changes. But for some corporations, those fixes might be too little too late.
A Roblox spokesperson told BI the company believed reincorporating in Nevada could “provide a stable and predictable legal environment in which the Company can focus on innovation and growth.”
