21–30 of 69 posts
Can someone explain to me how a public company can go private and there’s no fear of outcry from the shareholders in said company? Like companies do all these evil things to please shareholders but wouldn’t many shareholders of a public company be against the transition back to private?
Explains a lot of their moves. I'm still pissed at them canning the mobile baseball game (an MMO simulator with a rabid, engaged fan base) from their purchase of Glu.
Can someone explain to me how a public company can go private and there’s no fear of outcry from the shareholders in said company? Like companies do all these evil things to please shareholders but wouldn’t many shareholders of a public company be against the transition back to private?
One thing is fiduciary duty to the shareholders, another is “pleasing the shareholders” as you describe it. Pleasing the shareholders is necessary only when displeasing them means they will sell the stock when there is no buyer. If there is a buyer, the current shareholders are less relevant — as long as management cannot be accused of not fulfilling their fiduciary duty to them.
Can someone explain to me how a public company can go private and there’s no fear of outcry from the shareholders in said company? Like companies do all these evil things to please shareholders but wouldn’t many shareholders of a public company be against the transition back to private?
One thing is fiduciary duty to the shareholders, another is “pleasing the shareholders” as you describe it. Pleasing the shareholders is necessary only when displeasing them means they will sell the stock when there is no buyer. If there is a buyer, the current shareholders are less relevant — as long as management cannot be accused of not fulfilling their fiduciary duty to them.
It's hard to imagine what you mean here: a holder of shares cannot sell them unless they find someone willing to buy.
Can someone explain to me how a public company can go private and there’s no fear of outcry from the shareholders in said company? Like companies do all these evil things to please shareholders but wouldn’t many shareholders of a public company be against the transition back to private?
Immediate 20-30% jump in stock price if shareholders approve and can reinvest anywhere else. With a huge one day gain. In some cases, preferred shareholders get even sweeter deals. If you’re an executive or board member with a tons of shares you make millions and can retire immediately (or at least after the transition you agree to is complete.)
The buyer is Jared Kushner? Ivanka Trump's husband?
Can someone explain to me how a public company can go private and there’s no fear of outcry from the shareholders in said company? Like companies do all these evil things to please shareholders but wouldn’t many shareholders of a public company be against the transition back to private?
They generally pay a premium to the stock price before the transaction is announced, which means shareholders get more than the market value of their investment, which they can immediately roll into other investments. Usually people don't mind getting paid extra.
It happened to a company I held stock in. Years later there was a litigation started with some shareholders contesting the vote process and the results.