Roblox Eyes Nevada Move: Challenging Delaware’s Corporate Dominance
Staff Editor Roblox Considers Corporate Move from Delaware to Nevada
In a significant shift in corporate strategy, Roblox, the popular online gaming platform, is contemplating relocating its corporate registration from Delaware to Nevada. Shareholders are slated to vote on this proposal in May, marking a potential departure from what has long been considered the most business-friendly state in the U.S.
This move follows a trend initiated by Elon Musk, who recently transferred Tesla and SpaceX out of Delaware. Other major corporations, including Dropbox and Pershing Square Capital Management, have also made similar decisions, with rumors suggesting Meta may be considering a comparable shift.
The exodus from Delaware appears to be driven by various factors. Musk’s decision was influenced by a Delaware court ruling against his pay package. Roblox’s board, meanwhile, cites better alignment with Nevada’s corporate law and values as the primary motivation for the proposed move.
“Nevada offers a supportive and predictable environment for business growth,” stated a Roblox spokesperson, emphasizing the state’s stable legal landscape as conducive to innovation and expansion.
This trend poses a potential threat to Delaware’s longstanding dominance in corporate registrations. The state currently hosts 2.2 million registered entities, which contribute significantly to its revenue. Moreover, over 80% of U.S. Initial Public Offerings (IPOs) in 2024 were incorporated in Delaware.
In response to these developments, Delaware Governor Matt Meyer has acknowledged the need for changes to retain businesses. Proposed modifications aim to strike a balance between shareholder and management rights, though some corporations may find these adjustments insufficient.
As the corporate landscape continues to evolve, the outcome of Roblox’s shareholder vote in May could signal a broader shift in how companies approach state incorporation, potentially reshaping the future of corporate America.
