Corporate Governance Scholars Disagree With Elon Musk Argument That Twitter Would Be Better Off In Private Hands Rather Than Public Hands
Billionaire Elon Musk says he wants to take Twitter private by buying 100% of its publicly held shares in a deal worth US$43 billion.
In a letter to the board, he said that Twitter can’t serve as a platform for free speech as a public company. “Twitter needs to be transformed as a private company,” he wrote.
I’m a scholar in corporate leadership and governance. A big problem with private companies is they lack the safeguards of public corporations – like outside ownership and independent oversight.
Public ownership
Some years ago, I explored the distinction between public and private companies in detail when the American Bar Association invited me to write about what young corporate lawyers need to understand about how business works. Based on that research, I want to point to an importa...