Elon Musk taking Twitter private: What to know

White says that the biggest benefit Twitter will have from going private is not having to report to the SEC, which will save time, liability and the possibility of revealing proprietary information to competitors. He added that Twitter will now have lower liability from SEC or shareholder lawsuits and that there will be “less potential for myopic managerial decisions” since there will be no quarterly reporting or meeting with analysts to discuss earnings or trying to meet quarterly targets. As for drawbacks, White emphasized that “less liquidity is a big one” for Musk and his investors.”

Equity holders can’t just sell their shares in the open market. They would need to sell them to other sophisticated investors,” he continued. “There is less price discovery on those shares and less stock market feedback on whether a strategy is good or bad. Since you no longer meet with analysts, you also lose their monitoring, along with SEC monitoring.”

Saudi Arabia’s Kingdom Holding Company (KHC) are investors, along with Oracle co-founder Larry Ellison and Qatar’s sovereign wealth fund.

Elon Musk taking Twitter private: What to know | Fox Business