What Twitter could do as a privately held company: AP explainer

  • 📰 PennLive
  • ⏱ Reading Time:
  • 31 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 53%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

One important change for Twitter users is that the company would likely have more freedom to make big or unpopular changes.

Here’s a look at what it means for a company to go private.If the merger closes as planned, Twitter investors would get $54.20 in cash for each share they own. Those shares would then be canceled and cease to exist.Twitter would likely no longer have to file documents with U.S. regulators every three months to show how much money it’s making. It also likely wouldn’t have to announce changes to its strategy or operations that are big enough to materially change its fortunes.

Investors often send a stock price lower if they think a company’s decision is wrong, or at least being made at the wrong time. And the fiduciary duty of the board of directors for a publicly traded company is to generate a return for its investors. Both private and public companies “can do whatever they want, but there will be less blowback for privately held companies because a shareholder can’t complain because there are no other shareholders,” said Harry Kraemer, a former CEO and chairman of Baxter International who is now a professor at Northwestern University’s Kellogg School of Management.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 463. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

EXPLAINER: What Twitter could do as privately held companyIf Elon Musk and Twitter get their way, the company will soon be privately held and under his control.
Source: ksatnews - 🏆 442. / 53 Read more »

EXPLAINER: What Twitter could do as privately held companyIf Elon Musk and Twitter get their way, the company will soon be privately held and under his control
Source: WOKVNews - 🏆 247. / 63 Read more »

Twitter Earnings Fall Short as Company Admits Overstating User NumbersSocial media platform Twitter recently published its earnings report for the first quarter of 2022, falling short of expectations. The Company also admitted it had overstated its daily active users for several years, supposedly by error. The earnings report is expected to be Twitter's final report as a public company following Elon Musk's successful bid to take the company private. They probably would have gotten a bailout like mainstream media. “supposedly by error” …hmmmm Oops!
Source: BreitbartNews - 🏆 610. / 51 Read more »