EXPLAINER: What Twitter could do as privately held company

. The most obvious immediate change would likely be Twitter's stock being taken off the New York Stock Exchange. NEW YORK — — If Elon Musk and Twitter get their way, the company will soonThe most obvious immediate change would likely be Twitter's stock being taken off the New York Stock Exchange. But the company would also likely get freed from having to give regular updates about its business to U.S. regulators and to Wall Street.

“The biggest distinction is that Musk as an owner would be beholden to his own desires or to his and whatever remaining shareholders are still around, rather than to the wide investor base that it has now,” said Eric Talley, a law professor at Columbia University.The company would still have a board of directors, Talley said. It would also need to still follow state-level corporate governance rules, as well as all applicable tax, environmental and other laws.

A privately held company, meanwhile, doesn't need to worry about short-term drops for its stock price. It can also jump more whole heartedly into plans, say by hiring slews of new workers to transform it, without having to explain the jump in expenses to shareholders in its next quarterly report. “If you’re running the thing in a wasteful or slothful way, you’re going to get called on it,” he said.A potentially quick way to raise cash. Companies that are publicly traded can sell more shares of their stock if they need to raise cash in a pinch.If he's the only shareholder, he could ostensibly do whatever he wants. But he is also borrowing up to $25.5 billion from a slew of banks to pay for the takeover of Twitter. And they’re going to want their money back, plus interest.

Source: News Formal (newsformal.com)

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