Rackspace Bought Out and Now Private
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...hosting company Rackspace has gone private following a US$4.3 billion (A$5.7 billion) acquisition by American private equity firm Apollo Global.
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...The deal is expected to close by the end of the year, pending approval by antitrust regulators.
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Rackspace co-founder Graham Weston said going private would give the company more flexibility to manage the business for long-term growth.
http://www.itnews.com.au/news/rackspace-goes-private-in-57-billion-buyout-435363 -
Saw that in the news during the start of the weekend. Curious to see what happens next.
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Interesting. I like the idea of going private. Rackspace has a ton of "fixing things" to do at this point, though.
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What is the advantage of going private once a company is public?
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@tiagom said in Rackspace Bought Out and Now Private:
What is the advantage of going private once a company is public?
You're no longer beholden to what your shareholders want you to do and can do more innovative things that may not show short term returns.
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@coliver said in Rackspace Bought Out and Now Private:
@tiagom said in Rackspace Bought Out and Now Private:
What is the advantage of going private once a company is public?
You're no longer beholden to what your
shareholdersdaytraders and shortsellers and the public want you to do and can do more innovative things that may not show short term returns.FTFY, because actual investors are not in it for the short term
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@JaredBusch said in Rackspace Bought Out and Now Private:
@coliver said in Rackspace Bought Out and Now Private:
@tiagom said in Rackspace Bought Out and Now Private:
What is the advantage of going private once a company is public?
You're no longer beholden to what your
shareholdersdaytraders and shortsellers and the public want you to do and can do more innovative things that may not show short term returns.FTFY, because actual investors are not in it for the short term
Thanks, that's pretty much what I meant.
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@tiagom said in Rackspace Bought Out and Now Private:
What is the advantage of going private once a company is public?
It's huge. A public company has to answer to the SEC and Wall St. and random investors who make money from manipulating the stock price day to day rather than having the company make money and survive. A private company can focus on profits (or employee satisfaction or whatever they want.)
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Interesting, glad i asked.
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@tiagom said in Rackspace Bought Out and Now Private:
Interesting, glad i asked.
It's why we were so excited about Dell going private, they can focus on quality products and long term thinking in a way that almost no one else can. It's why NTG is a private company, answering to shareholders publicly is not just crippling because of stock price manipulation, but it also is very costly. Big public companies spend a fortune placating stockholders, explaining things to them, holding stock holder events, etc. It's a massive cost center with no value (other than investment money) and often many of the executive staff, like the CEO, mainly spend their time working to make them happy rather than running the business!
