My take on their comment was that it should be worth many billions if it was being run effectively but that it's not.
That doesn't mean the market is wrong, it means the market thinks it will continue to be run ineffectively.
That doesn't mean the market is wrong, it means the market thinks it will continue to be run ineffectively.
The controlling interest can just hire incompetent ops heads and side-line competent ones for a few quarters ... slowwalk any events that could increase value
The board resigning likely helps the plan
Fair chance future offers will get worse the longer it goes on
It seems like there are contradictory facts being claimed: that the price to go private is a lowball, and that the current price is accurate.
If they sell, they are selling a stake in the real company as it exists, not the alternate reality one.
Think of a more relatable example. . A rental house with crazy tenants sells for less than a vacant one.
If you buy or own a stake in a business that is controlled by poor managers, you are lucky to sell for a 20% premium.
Honestly that's borderline fraud.
They have been (miss)managing the company about the same for 18 years, so it would have to be one of the most epic cons of all time.
On the other hand, partial owners and management take companies private all the time. It is an extremely common occurrence. It and PE buyout are probably the two most common ways.