EXPLAINER: What Twitter could do as privately held company

NEW YORK -- If Elon Musk and Twitter get their way, the company will soon be privately held and under his control.

One important change for Twitter users is that the company would likely have more freedom to make big or unpopular changes. That's because it wouldn't have to worry about potential blowback from Wall Street.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 US regulators every three months to show how much money it’s making.

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.

Source: News Formal (newsformal.com)

Philippines Latest News, Philippines Headlines

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

Twitter CEO tells employees company is in the dark over future under MuskTwitter Chief Executive Parag Agrawal tells employees the future of the social media firm is uncertain after the deal to be taken private under billionaire Elon Musk closes.
Source: rapplerdotcom - 🏆 4. / 86 Read more »

Twitter-Musk deal includes $1 billion termination fee —filingElon Musk will have to pay Twitter Inc (TWTR.N) a fee of $1 billion if the billionaire terminates his $44 billion cash deal for the social media company, it said in a filing on Tuesday.
Source: gmanews - 🏆 11. / 68 Read more »

How to use Rappler's PHVote micrositeRappler's PHVote microsite provides the latest news, profiles, explainers, analyses, tools, and more about the 2022 polls – all in one place. Here's how to use it. PHVote WeDecide
Source: rapplerdotcom - 🏆 4. / 86 Read more »

China dismisses speculation it may try to influence Twitter via TeslaChina&39;s foreign ministry said on Tuesday there was no basis to speculation that Beijing could try to use leverage over electric car maker Tesla in order to influence content on US social media site Twitter Inc.
Source: gmanews - 🏆 11. / 68 Read more »

A Musk-owned Twitter opens door to potential Trump returnNEW YORK: Four days after Twitter permanently suspended Donald Trump's account on January 8, 2021, the then-US president's son pleaded with entrepreneur Elon Musk to...
Source: TheManilaTimes - 🏆 2. / 92 Read more »

‘Fake news’ prompts Mindanao LGBTQIA+ group to hold voter’s education for membersCAGAYAN DE ORO CITY — One of Mindanao’s biggest groups of LGBTQIA+ has launched “Bayot, Botar!” (Gay, Vote!), a voters’ education caravan to fight “fake news” and disinformation among
Source: cebudailynews - 🏆 8. / 71 Read more »