Originally Posted by iSteelers
Pie in the sky question but what does Apple gain by remaining a public company? I know they will not go private but what is the current advantage? Wall Street never let's up on them no matter how good they perform. It is not enough to put out great products and make great profits. There is always someone badgering them for more. What a pain in the ass for Cook and Co to have to deal with. Innovate don't litigate Einhorn.
1. Going private would be very difficult. Convincing Apple shareholders to sell would require a large premium over current share price. Obtaining the $700-900 B in capital to even begin such a venture would not be easy.
2. Apple retains access to capital if they should ever need it.
3. Employee incentive compensation is very easy with a publicly traded company. While a private company can give employees tracking stock (which behaves like stock for purposes of calculating distributions and value), there's no liquidity.
4. If the investment comes from a variety of different sources (as it would pretty much have to, given the size), management oversight becomes an issue. Getting the 20 different funds to agree on how to run things would be an endless battle.
There's not a chance that Apple would go private.