said by fAcEtIOUs:said by 56403739:No you still don't get it. Why would the interested parties buy out the public stock if there is no return on the investment? What changes from public to private except for a dramatic reduction in publicly available financial and operating information?
Why would private owners suddenly decide to make it a non-profit entity?
Why is private ownership better?
I think his theory is that private investors would look more to long term results and not only look at the short term and live and die by quarterly results. We know that isn't usually true. A prime example: When Cerberus took over Chrysler and took it private, things got MUCH worse and not better.
The sharks who take public companies private are usually a rapacious mgt team that does a leveraged buyout. They sell off everything they can and then dump the mess in an IPO before people wise up to what they did.
Sorta like Vonage did. LOL!
