Linked by fran on Tue 30th Nov 2010 10:38 UTC
Microsoft "Microsoft is one of the big stock-market success stories - or at least it used to be. The company has got thousands of people rich, through employee stock options or just through smart investing. But with stock under $30, the same place it was 10 years ago, what if Microsoft went private? That was the question posed this morning by Seattle Times columnist Brier Dudley. 'Sure, in the back of people's minds. We've thought about it,' Bill Koefoed, Microsoft's general manager of investor relations, told the Seattle Times."
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RE: Out of context
by pgeorgi on Tue 30th Nov 2010 16:00 UTC in reply to "Out of context"
pgeorgi
Member since:
2010-02-18

Having employees participate in the success of the company doesn't require being public - handing out stock options just looks slightly less socialist than distributing some of the corporate money as part of a bonus scheme.

Any shares they already handed out have to be bought back (that's the hard part of "going private"), and the company could still propose to convert pending stock options for employees into some cash payment.

The appeal of being private is that you don't have to report that many details to the public (incl. competitors), and you don't have some random investor messing around with your business plan.
I actually wonder why companies put up with the stock market at all once they have the money to buy out of it - seems to be some tradition that large companies have to remain public.

Reply Parent Score: 1

RE[2]: Out of context
by dnebdal on Wed 1st Dec 2010 14:06 in reply to "RE: Out of context"
dnebdal Member since:
2008-08-27

I actually wonder why companies put up with the stock market at all once they have the money to buy out of it - seems to be some tradition that large companies have to remain public.


I guess part of it is that you'd have to spend a lot of money that could instead be invested in whatever it is the company does.

Reply Parent Score: 1