Tripadvisor, under media executive Greg Maffei, wants to reincorporate in Nevada, over the objection of minority shareholders. Billionaire Barry Diller is awaiting a ruling that could relax Delaware’s scrutiny of transactions like the 2020 split of some of his online businesses. And Elon Musk, who reincorporated Twitter as X in Nevada last year, has said he would ask shareholders about reincorporating Tesla TSLA 2.12%increase; green up pointing triangle in Texas.
“I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters,” Musk posted on X on Jan. 30, the day a Delaware court threw out his $55.8 billion Tesla pay package. On Thursday, Neuralink, Musk’s closely held brain-implant company, incorporated in Nevada, state records show.
Delaware, of course, has long held primacy in the world of U.S. corporate law, including the scrutiny devoted to transactions between a public company and any shareholder who effectively controls it. Nevada and Texas are among the states that want a piece of that business and are hoping to appeal to at least some companies by setting up an alternative legal environment.
Companies most commonly register in their home state or Delaware. Still, states are doing more to compete.
Delaware played politics with Musk over a business decision and it will cost them.