Meta in talks to reincorporate in Texas or another state, exit Delaware, WSJ reports

Jan 31 (Reuters) - Meta Platforms (META.O) is discussing moving its incorporation from Delaware to Texas or other states, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The social media giant has talked to Texas officials about the potential changes, the WSJ said, adding that these discussions began before President Donald Trump's new administration. Changing the paperwork would not move its corporate headquarters. A Meta spokesperson stated that they do not plan to move their corporate headquarters out of Menlo Park, California, but declined to comment on reincorporation when contacted by Reuters.

Meta's possible move to Texas is similar to Elon Musk's decision to reincorporate Tesla (TSLA.O) and SpaceX in the Lone Star state. Musk's decision to leave Delaware came after a court there ordered him to give up his $56 billion compensation package. Texas is seen by some businesses as having a more favorable legal and regulatory environment, especially in areas like taxation and corporate governance, which can be appealing to companies looking to reduce costs and streamline operations.