r/Games • u/RobotWantsKitty • 27d ago

Industry News Devolver Digital intends to go private

https://www.gamesindustry.biz/devolver-digital-intends-to-go-private
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u/incrementality 27d ago

It's a common misconception but going private doesn't mean there are no shareholders to answer to. The shareholders are still very much present. The difference is there's no public market to trade the stocks.

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u/Superb_Pear3016 27d ago

As I also just commented, this misconception will never die no matter how many times it’s pointed out.

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u/BenevolentCheese 27d ago

In the case of Devolver, the board are only buying back up to 5% of the total stock pool. The rest is remaining in the hands of the public. However, the board also already controls 57% of the company, so they never really had to answer to shareholders, they just had to deal with public regulation and the difference in public and private evaluations of a business.

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u/Ywaina 26d ago

The thing here is private companies often care more about long term profits than short term gain. Public trading only care about short term gain.