Cox Wants Out Of Wall Street Scrutiny
from the leave-us-alone... dept
It appears that cable company Cox Communications is sick of all the pressures of being a public company. Believing that the short term pressures of Wall Street are holding back their ability to aggressively take on the competition, the company is trying to buy out public shareholders and take the company private. This does come right after what was labeled a "disappointing" quarter, so it appears that the family that controls Cox simply is fed up with having to worry about such things every few months.
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Smart move on their part if they can pull it off. It's a huge pain in the ass being a publicly traded company compared to being a private one. That pain is also measurable in Cash as a public company is subject to many more regs which cost to document and maintain.
There has been a small number of talking heads on the Business channels suggesting that a number of public companies may be taken private simply because of the cost of Sarbanes-Oxley compliance.
Too much Government == Bad business.
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I have read that Sarbanes-Oxley compliance cost AIG $400 million in 2003.
Compliance is a bitch
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back in the bottle
You think it's hard to take a company to IPO?
Well, you don't understand just how hard it can be to take a public company private. Go ahead, I dare anyone to name any company in the last 5 years that have gone private after being public for more than 3 years (penny stocks not included).
It just isn't done. Why? Because the company actually has to face up to that 50 times earning inflation that the stock market factos in.
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