Meta Said to Explore Moving Where It Is Incorporated

Meta, the parent company of Facebook, Instagram, and WhatsApp, is reportedly exploring the possibility of changing its state of incorporation from Delaware to another state, according to sources familiar with the matter.

The company is said to be considering Texas and several other states as potential options. The sources, who requested anonymity due to the sensitive nature of the discussions, mentioned that the process is still in the early stages and no final decision has been made. However, Meta’s corporate headquarters would remain in Menlo Park, California.

A spokesperson for Meta declined to provide any comments on the matter. The Wall Street Journal had previously reported on the possibility of Meta relocating its incorporation from Delaware to Texas or another state.

Since its establishment as Facebook in 2004, Meta has been incorporated in Delaware. Delaware is a popular choice for many companies due to its business-friendly laws and well-established corporate legal system. However, Meta has faced several shareholder lawsuits in Delaware, including one related to the Cambridge Analytica scandal in 2018.

Moving its incorporation to a state that may offer more favorable conditions for companies in shareholder litigation could potentially benefit Meta in future legal proceedings, according to the sources.

In a similar move, Elon Musk’s SpaceX shifted its incorporation from Delaware to Texas last year. The decision came shortly after a Delaware court invalidated Musk’s pay package at Tesla, the electric car company he heads.

The legal dispute arose from a stock options package that allowed Musk to acquire a significant number of Tesla shares at a predetermined price. The court ruled that Musk had too much influence over his own compensation package, which was valued at over $50 billion at the time.

This story is still developing, so stay tuned for updates.