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> SUSE’s Management Board and Supervisory Board support the strategic opportunity from delisting of the company as it will allow SUSE to focus fully on its oper
by mkl95 3y ago
> SUSE’s Management Board and Supervisory Board support the strategic opportunity from delisting of the company as it will allow SUSE to focus fully on its operational priorities and execution of its long-term strategy
What does this mean? Is their current status adding some significant overhead that would go away by going private?
- paxys 3y agoGoing private means you don't have to answer to shareholders and their short term demands, which may be a good thing for a company. Of course it would be naive to assume that the private equity firm that bought it is in it for the good of the community rather than pure profit.
- jacooper 3y agoShareholder pressure? Maybe because of their recent goodwill moves against Red hat?
- pmontra 3y agoShareholder pressure is also the need to make the value of the share grow, with any mean, or shareholders will buy something else and the value of the company will go down, no more deals paid with shares, no bonuses for the CEO, etc. A private company might attract different managers and pursue different goals. However Finance and Industry usually don't go along well. Finance eats industries to make profits.
- pyrophane 3y agoProbably that as a private company it would be easier for them to do things that would have negative short term impact on revenue but be better for the company in the long term.
- Ensorceled 3y agoSOX and other SEC regulatory constraints and costs. Disclosure rules. Shareholder accountability for strategic decisions. Stricter accounting and audit requirements. Often your board has representatives of large shareholders, who have their own considerations and limitations, as opposed to owners.
- patmorgan23 3y agoPublic companies have higher reporting and compliance duties than private companies. Also have to deal with the influence of public equity markets.