Core Points - Delaware's reputation as a corporate-friendly state is declining as companies like Roblox, Dropbox, and Pershing Square Capital Management consider leaving [1][2] - The trend of corporations moving out of Delaware began with Elon Musk's decision to relocate Tesla and SpaceX after a legal dispute [2] - Roblox's board believes that Nevada's corporate law framework aligns better with its values and mission, providing a supportive environment for innovation and shareholder value [3][5] Company Actions - Roblox has proposed to its shareholders to reincorporate in Nevada, a move already approved by its board [2][5] - The company emphasizes that Nevada could offer a stable legal environment conducive to growth and innovation [5] State Response - Delaware Governor Matt Meyer acknowledges the concerns and is working on changes to retain corporations, emphasizing the state's historical legal expertise [4] - Proposed changes were approved by the governor on March 25, but some corporations may find these adjustments insufficient [4][5] Industry Impact - The ongoing exodus of companies from Delaware could significantly impact the state's revenue, as it is home to approximately 2.2 million registered entities [3] - In 2024, over 80% of U.S. IPOs were incorporated in Delaware, highlighting its previous dominance in the corporate landscape [3]