GoPro, Inc. (GPRO)

[Tom4investor2011]

How does privatization affect a company's shareholders?

The most recognized transition between the private and public markets is an initial public offering (IPO).

Through an IPO, a private company "goes public" by issuing shares, which transfer a portion of ownership in the company to those who buy them. However, transitions from public to private also occur.

In public to private market transactions, a group of investors purchases most of the outstanding shares in the public company and makes it private by delisting it. The reasons behind the privatization of a company vary, but it often occurs when the company becomes heavily undervalued in the public market.

This will not be a case for GPRO which has $0 in debts.

FWIW GL