SUSE To Be Taken Private By Its Largest Shareholder
SUSE To Be Taken Private By Its Largest Shareholder
Marcel LUX III SARL (Marcel) as the largest shareholder in SUSE is planning to take the company private and delist it from the Frankfurt Stock Exchange. SUSE will be merged with an unlisted Luxembourg entity. Marcel currently owns a 79% stake in SUSE.
If they're public, they have huge pressure. If not, they can play their own game with a specific strategy that a shareholder might not like. So this could well be a good thing. Public trading usually leads to enshitification.
That being the reason why valve are able to produce quality over quantity
Used to think the same about LTT though
I wonder what would that mean for openSUSE, given that, apparently, an equity firm is making decisions on behalf of the SUSE board 😞
I know nothing about this firm and the suse board (that seems to agree with the plan) but normally is great for companies to not be listed in stock market, usually the market put much pressure in short term profit and does not care about long term sustainability.
I wonder what would that mean for openSUSE
Nothing. The oS maintainers put safeguards in place. At worst they would need to come up with a new name because of trademarks. openSUSE is sponsored by other companies than just SUSE. That doesn't go just away.
Hopefully nothing too drastic, but also according to the article they were only publicly traded from 2021 to now, so for most of their existence they were in private hands anyway, albeit being passed around a fair bit.
I missed the point wrt 2021. That's somehow comforting/reassuring. Thanks.
SUSE was already private under an equity firm until 2021 (EQT). Probably fine.
It doesn’t make automatically a good news, for example there's a billionaire who took private ownership of an once famous social network and ran it to the ground completely annihilating its purpose
X-Bird: Nazi Chirpin'
This is the best summary I could come up with:
The SUSE organization has changed hands many times over the years... From being its own independent company to the notable acquisition by Novell two decades ago.
Over the past decade SUSE has changed hands between Attachmate, Micro Focus, EQT Partners, and then went public back in 2021 on the Frankfurt Stock Exchange.
Marcel LUX III SARL (Marcel) as the largest shareholder in SUSE is planning to take the company private and delist it from the Frankfurt Stock Exchange.
In taking SUSE private, the EQT Private Equity / Marcel is offering a ~16 EUR per share price, around a 67% premium over today's share price.
"SUSE’s Management Board and Supervisory Board support the strategic opportunity from delisting of the company as it will allow SUSE to focus fully on its operational priorities and execution of its long-term strategy.
The interim dividend will be paid to all shareholders prior to the settlement of the Offer and will allow Marcel to finance its purchase of SUSE shares under the Offer and certain transaction costs incurred by it."
I'm a bot and I'm open source!
Good bot!
Also, I'd argue this is a good step forward for Suse, as it will take a lot of shareholder pressure off of them.
Coincidentally I looked up whether they were private 30 minutes ago. Being a publicly traded company puts the focus on short term profit, the same issues Redhat is having with IBM. It might not help if the equity still wants that, but I’m hoping they won’t.
Thankfully as only 30% of the other investors have that option, it appears the controlling entity can let them sell their shares if they want out in the direction the company is going
I can't decide if this will be a good idea or not
I would be cautiously optimistic. If they are public, the the top tier entity is the shareholders which usually don’t look further then their dividends and so public company usually focuses on short term growth. Public company doesn’t need to bend backwards towards committee of millions of shareholders and can focus on long term as it wants and deems fit, usually preferring long term investment. Of course it can go the other way too. When they are not responsible to shareholders, theres a possibility that the it gets squeezed end enshitified waaaay faster.
I mean I don’t think it’s the same as red hat at all because they are not making it closed source.
This is good news 😀. It's always better to have a privately owned firm where there is no pressure to contrastingly make more money every year. They'll be able to focus on providing the best systems and support rather than how much money they can make for the shareholders. 👍
Canonical
Looking pretty good right now among the corporate distro makers. 🥲
Canonical
Looking pretty good right now among the corporate distro makers. 🥲
Yeah, sure... https://lwn.net/Articles/937369/
Gross, gross, grrooossssss!