The country’s tax haven for corporations, Delaware, is seeing a shift in billionaire businessmen like Greg Maffei, Elon Musk and Barry Diller’s perspective. They want to move out or challenge the state due to its control over public companies.
What are the billionaires doing?
Media executive Greg Maffei aims to reincorporate his company in Nevada despite resistance from minority shareholders.
Elon Musk recently scrutinized the state after a Delaware judge ruled his $56 billion compensation package with Tesla was “deeply flawed” and must be undone.
IAC and Expedia Group Chairman Barry Diller seeks a ruling to ease Delaware’s scrutiny of transactions involving major shareholders, like incentives to entrepreneurs, founders and CEOs.
Meanwhile
Nevada and Texas are competing with Delaware by offering alternative legal environments, attracting corporations with lower litigation costs and greater protections for directors.
Musk already reincorporated X (Twitter) in Nevada last year and now recommends businesses to do the same or move to Texas.
He also wants to move Tesla to Texas.