Trump Media and Technology Group (TMTG), parent of the social-media platform Truth Social, has dropped Delaware as its legal home and re-domiciled in Florida after shareholders backed the change at the company’s annual meeting on April 29. The switch became effective on April 30, the company said in a news release issued Thursday.
The move adds to a growing list of high-profile exits from Delaware’s once-dominant corporate registry. Last year, Tesla shareholders voted by an 84 percent margin to move the electric-car maker’s charter to Texas after a Delaware Chancery Court judge voided Elon Musk’s $56 billion pay package.
Latin American e-commerce leader MercadoLibre took a similar step on April 28, asking investors to approve a relocation to Texas because, it said, Delaware’s flexible legal standards create “less predictability for an innovative company.”
In February, billionaire investor Bill Ackman said he would reincorporate his Pershing Square management company in Nevada, noting that top law firms increasingly recommend Nevada and Texas over Delaware.
Dropbox and other firms have also signaled they may leave, while Meta Platforms has reportedly discussed a switch, prompting Delaware lawmakers to draft a bill that would curtail some investor lawsuits in an effort to keep companies from bolting.
For Trump Media, a Delaware judge ruled last September that it breached an agreement with Orlando, Florida-based ARC Global and must issue more than 500,000 additional shares before insider lockups expire.
Reincorporation does not affect the location of Trump Media’s headquarters, which was already in Florida, but it does bring the company’s governing law in line with Florida, whose statutes offer directors more explicit shields and carry lower annual fees than Delaware. The share exchange occurred on a one-for-one basis, requiring no action from investors, the company said.
