First State Economic Development News + Notes - Issue 167
Dexit Edition
It’s been a light week for what I would call traditional Delaware economic development news, but there are plenty of local and national stories focused on Delaware’s corporate franchise. As Larry Cunningham, Director of the UD Weinberg Center for Corporate Governance and a new subscriber to this newsletter (welcome Larry!), pointed out on LinkedIn this afternoon, Delaware State Senators pre-filed a corporate law reform bill and discussion, debate, and Dexit speculation are likely just beginning.
Presenting the economic development news of the week:
In Delaware, office vacancies drop, Governor Meyer considers corporate court reform, and the state Supreme Court issues a ruling on TripAdvisor’s decision to reincorporate in Nevada.
Elsewhere, Rivian moves beyond their Amazon-exclusive electric van deal, Trump slaps 25% tariffs on aluminum and steel, and Altman and Musk just can’t play nice.
Delaware Econ Dev News
Northern Delaware office vacancies drop in Q4 | DE Business Times
“Last year had the highest leasing activity since 2019 with 443,00 square feet of space in transactions, according to Newmark senior managing director Wills Eillman. Five years ago, the northern Delaware region saw around 1.2 million square feet of leases signed in a 12-month span.”
Musk v Delaware | WDEL
“Larry Cunningham, Director of the University of Delaware's Weinberg Center for Corporate Governance, says disapproval of Delaware and its Chancery Court is nothing new, and has been going on for a hundred years, because when cases end up in court there's winners and losers.”
Meyer considers corporate court reform, drawing concern | Spotlight Delaware
“Delaware’s business and legal scene is unsettled following new reports of high-profile companies contemplating Delaware corporation departures, and following what some in the community believe is a troubling appetite for reform by Gov. Matt Meyer’s new administration.”
Delaware TripAdvisor Ruling Puts Governance in Investors' Hands | Bloomberg Law
“The Delaware Supreme Court issued a landmark ruling last week in a case involving TripAdvisor Inc.’s leadership’s decision to reincorporate the company from Delaware to Nevada’s more permissive legal system. TripAdvisor’s victory signals more leeway for controllers to game differences in state corporate laws, putting the onus on investors to reassess their appetite for risk related to different governance frameworks.”
National + International Notes
Rivian is now selling electric vans to anyone who wants one | The Verge
“For several years, Rivian’s van was exclusive to Amazon. Now, the platform on which the e-commerce giant based its delivery van is open to anyone with a fleet of commercial vehicles and some money to burn.”
The Inside Story of How Altman and Musk Went From Friends to Bitter Enemies | WSJ
“Altman and Musk co-founded OpenAI in 2015, but their relationship soured when Musk left in 2018 following a power struggle. It worsened when Musk responded to the launch of ChatGPT by launching his own rival startup, xAI. This week the feud went nuclear when Musk followed the Stargate unveiling with his own bombshell: a hostile $97.4 billion bid for the assets of the nonprofit that controls OpenAI.”
Is AI Revolutionary or Hype? What If It Is Both? | WSJ
“Even with a longer cycle for AI’s return on investment, some corporate technology leaders say they can’t wait for the technology to get better or prove its longer-term value. At the moment, writing code and customer service have emerged as early areas where AI is paying off, but the transformative changes that will deliver those trillions could remain farther down the line.”
Trump Imposes Global 25% Steel, Aluminum Tariffs | WSJ
“President Trump on Monday announced 25% tariffs on imports of steel and aluminum to the U.S., reinstating global duties without exceptions for allies such as Canada, Mexico, Japan and South Korea that were relaxed by the Biden administration.”
A direct hit | Science
“Late last week, the Trump administration set off a frenzy in the US scientific community when the National Institutes of Health (NIH) announced that indirect cost reimbursement for federally funded research would be capped at 15%, a drastic cut from a usual range of 50 to 70%.”
Tune In
Senate Concurrent Resolution 17 | Delaware General Assembly
“This Concurrent Resolution requests the Council of the Corporation Law Section of the Delaware State Bar Association prepare a report of recommendations for legislative action regarding awards of attorney’s fees in certain corporate litigation cases.”
Questions, Feedback, or Items to Share?
Troy Mix
mixedecon@gmail.com
Views expressed are my own and do not necessarily represent those of the University of Delaware or the Institute for Public Administration.