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Delaware faces exodus of tech companies

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Delaware faces exodus of tech companies


Delaware is facing a further exodus of tech companies amid reports that Meta and Dropbox are moving out of the state.

Newsweek has contacted Meta and Dropbox for comment via email.

Why It Matters

Delaware has long been considered a business-friendly state due to its corporate tax advantages, and is home to multiple large companies. However, backlash against the First State has intensified after Delaware Judge Kathaleen McCormick ruled that Tesla CEO Elon Musk’s record-breaking $56 billion compensation package was excessive.

Musk, who has become increasingly influential in both the political and corporate world, urged companies to pull out of the Democratic-led state. In February 2024, he announced that SpaceX was relocating its incorporation from Delaware to Texas, following Tesla’s corporate move from California to Texas in 2021.

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A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 18, 2024, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp.

FABRICE COFFRINI/AFP/Getty Images

What to Know

Meta, the parent company of Facebook, Instagram, and WhatsApp, is reportedly considering moving its incorporation from Delaware to another state, such as Texas, according to reports in the national press.

The company has been in talks with Texas officials about the potential move, though other states are also being considered. An unnamed source told The Wall Street Journal that these discussions predated former President Donald Trump’s return to office.

Musk holds a role in the new Trump administration as head of the Department of Government Efficiency (DOGE).

The move would not involve Meta relocating its corporate headquarters out of California.

Texas is perceived as having a more favorable legal and regulatory environment for businesses, particularly in taxation and corporate governance, Reuters reported.

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Meanwhile, file-hosting service Dropbox is also said to be moving its incorporation from Delaware to Nevada.

The move was revealed in a letter to stockholders that has been shared on social media. Dropbox said it has received approval from a majority of shareholders to proceed with the transition.

What People Are Saying

Stephen Bainbridge, a law professor at the University of California, Los Angeles, told The Wall Street Journal: “The Texas state government is trying to send out signals that the Texas state courts will be more friendly to businesses than the Delaware court has been. But there’s no guarantee that that’s going to happen.”

Eric Talley, a corporate law and governance professor at Columbia Law School, told The New York Times: “One could read this as a bet that because Musk moved Tesla and some of his other companies to Texas, the client effects will be that it’ll develop a jurisprudence friendly to controllers. The hope that Musk and Zuckerberg have is that the courts in Texas will be much more permissive about them doing whatever they want, even if it involves a conflict of interest. There’s a much longer leash in Texas.”

Robert Anderson, a law professor at the University of Arkansas, posted on X, formerly Twitter: “Dropbox is also leaving Delaware. It’s happening. For those who don’t spend their days studying corporate law, today is an absolutely seismic event.”

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Elon Musk in a January 2024 post on X: “Never incorporate your company in the state of Delaware

Dropbox, in a message to stockholders, stated: “Stockholders of the company holding at least a majority of the voting power of our outstanding shares of capital stock entitled to vote adopted resolutions by written consent in lieu of a meeting of stockholders to approve the reincorporation of the company from the state of Delaware to the state of Nevada by conversion.”

What Happens Next

It remains unclear when or if Meta and Dropbox will officially move out of Delaware.



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Delaware

Elon Musk-Led Overhaul of Delaware Business Law Upheld by State Court

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Elon Musk-Led Overhaul of Delaware Business Law Upheld by State Court


The Delaware Supreme Court upheld the constitutionality of an Elon Musk-inspired overhaul of state law that governs most major US corporations, handing a win to company founders, insiders and private equity owners who sought less restrictive business rules.



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Delaware County school employee accused of sex assault of minor in Texas

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Delaware County school employee accused of sex assault of minor in Texas


Authorities say a Delaware County school employee is accused of traveling to Texas to sexually assault a minor he met online.

What we know:

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Michael Robinson, 43, was taken into custody near Radnor Middle School where investigators say he worked as a paraprofessional.

Investigators believe Robinson traveled to Tyler, Texas in the summer of 2024 to meet a minor he had connected with online.

Robinson, according to U.S. Marshals, allegedly sexually assaulted the teen over the course of a weekend. 

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Delaware County school employee accused of sex assault of minor in Texas

Prosecutors in Smith County, Texas charged Robinson in December with Aggravated Sexual Assault of a Child Under 15-years-old.

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Robinson is being held at a Delaware County jail where he is awaiting extradition to Texas.

What they’re saying:

U.S. Marshals in Pennsylvania said Robinson’s arrest shows that “sexual predators will always be pursued relentlessly.”

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The Radnor Township School District said Robinson has been placed on leave and will not have contact with students.

“Parents of the limited number of children to whom the employee was assigned were contacted by the administration immediately.”

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The district said it is cooperating with law enforcement and has “no information indicating misconduct involving district students.”

Crime & Public SafetyDelaware CountyNews



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Rehoboth cancels 2026 Polar Bear Plunge after major snowstorm

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Rehoboth cancels 2026 Polar Bear Plunge after major snowstorm


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Rehoboth Beach has canceled the upcoming 2026 Lewes Polar Bear Plunge and 5K Run to the Plunge as the Sussex County resort town continues dealing with the aftermath of last weekend’s snowstorm, organizers of the annual Special Olympics fundraiser said on Feb. 26.

“Rehoboth Beach is navigating significant challenges because of the snowstorm,” a Special Olympics Delaware email announced. “At present, the boardwalk and all beach crossings remain snow covered and many sidewalks throughout downtown Rehoboth are as well.”

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The plunge and 5K had been rescheduled to March 1 after severe weather conditions in late January caused it to be moved from its original Feb. 1 date.

The plunge will not be rescheduled for this year.

Last weekend’s storm brought nearly 2 feet of snow to parts of Sussex, closing hundreds of roads when trees and wires were downed. There were also power outages across the county, including Rehoboth Beach which had to restore power to its wastewater treatment facility.

Plunging for a cause

The polar bear plunge is one of Special Olympics Delaware’s more popular fundraisers, drawing more than 4,000 participants last year.

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In recent years, the event has been bringing in more than a million dollars for Special Olympics Delaware. Last year, plunge events drew $1.3 million, just shy of the record-breaking $1.5 million raised in 2024.

Alex Seymore, Special Olympics Delaware’s director of digital media, said the organization had already raised more than $1 million from this year’s event.

“We expect a small impact,” Seymore told Delaware Online/The News Journal. “But again, we’re showing that we’ve raised over a million dollars.

He added they are reviewing how the cancelation will impact them and their services.

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“It’s been just a couple hours, so we’re not completely positive how it will impact things in the long run,” he said. “We’re thankful for everybody that’s helped raise this money through this time.”

What is still occurring

While the plunge and 5k and been canceled this year, there are other indoor events that will continue as scheduled:

Feb. 27

  • 4 p.m. to 7 p.m. – pick up packets and souvenir sales for the Plunge and 5K Run to the Plunge at the Rehoboth Beach Convention Center, 229 Rehoboth Ave, Rehoboth Beach.

Feb. 28

  • noon to 2 p.m. ​Fire & Ice in the Atlantic Sands Ballroom, 1 Baltimore Ave, Rehoboth Beach.
  • 2:30 p.m. to 5 p.m. Restaurant chili contest.
  • 4 p.m. to 7 p.m. – pick up packets and souvenir sales for the Plunge and 5K Run to the Plunge at the Rehoboth Beach Convention Center, 229 Rehoboth Ave, Rehoboth Beach.

Send tips or story ideas to Esteban Parra at (302) 324-2299 or eparra@delawareonline.com.



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