Visa Will Go Public

SirMoby · 2006-10-11, 11:25 AM

http://www.usatoday.com/money/indust...o_x.htm?csp=34

Quote:

SAN FRANCISCO (AP) — Visa, operator of the world's largest consumer credit card payment system, said Wednesday it plans to restructure its organization to create a public company and sell shares in an initial public offering.
In the first step, a company called Visa Inc. will be created through a series of mergers involving Visa Canada, Visa USA and Visa International, which includes the regions of Asia Pacific, Latin America and the Caribbean, and Central and Eastern Europe, Middle East and Africa.

Visa Europe will remain a membership association, owned and governed by its European member banks, and become a licensee of Visa Inc.

Visa said the restructuring will improve organizational efficiency, address certain legal claims that exist in some markets, and increase access to capital.

After the mergers are complete, Visa said it will begin the IPO process and list its shares on a major stock exchange. It expects most of the shares in the reorganized company will be sold to the public.

Visa is currently a private membership association jointly owned by more than 20,000 financial institutions around the world.

The boards of Visa's six regions and Visa International have unanimously approved the plans, which are now subject to approval by Visa members and regulatory authorities.

Visa Europe will be a minority stockholder in the global company, and Visa Inc. will have a minority investment interest in Visa Europe. As part of the restructuring, Visa Inc.'s board will consist of a majority of independent directors. A search for independent directors and a chief executive officer for Visa Inc. is underway.

The plans come in the wake of a similar move by rival MasterCard (MA), which went public in May.

Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

How will this effect the industry?

Toby · 2006-10-11, 11:42 AM

Quote:

Originally Posted by SirMoby

How will this effect the industry?

In my experience companies become much more "stock price aware" after they go public. Cutting out the significant dollars made from processing for adult would have a substantial negative impact on earnings.

Of course it's far more complex than that, but I don't think it will be a bad thing for the adult biz.

lelahosting · 2006-10-11, 02:36 PM

I do not see this being bad for adult either

unless they get scared because some christian group comes around saying ban the immoral adult transactions and they get afraid stock price will drop

sspproductions · 2006-10-11, 03:09 PM

After reading that and having a cup of tea my gut reaction is this.

Its a response to the gambling restrictions or they know the economys about to hit freefall and want to cash in before it does.

In my limited knowledge it seems its illegal for US companies to process unless they are a US owned WTF is that meant to mean.

Anyway splitting the EU off as a seperate company they will be able to route payments offshore as it where and avoid it being a US company doing the processing.

As for the adult bit if the worse happens and they did rush through a adult law similar to the gambling and no one noticed till it was to late then it will be ok because there will be Visa EU, ccbill EU and verotel plus whoever else to handle it so just have a few bucks ready to by a off the shelf company somewhere nice and friendly like up here in the baltics.

At the end of the day its all about the $$ the US cant afford for people not to spend money on porn or gambling mastercard didnt stop they just dont want it advertised to much.

Just my take on the current climate.

Jim · 2006-10-11, 03:13 PM

Once public, Visa answers to it's stockholders. The only thing the stockholders will care about will be the money being made. If anything, this is good news.

JustRobert · 2006-10-11, 03:29 PM

I agree with Jim on this. Most people, even those against the adult industry, usually look at the bottom line or their own personal return on investment first before making a final decision.

virgohippy · 2006-10-11, 04:40 PM

Just look at the number of mutual funds which invest in industries of sin, like tobacco and alcohol.

Bottom line attitude = less funny business.

Simon · 2006-10-12, 08:52 AM

Maybe it would be a smart idea for adult companies and independent adult webmasters to buy up some of the Visa shares when they're available. It's be nice to have a voice at shareholder meetings. Plus every share owned by an adult webmaster is one less share the "Crazy Christians" can buy.

--

(Note: Crazy Christians is a reference to a skit on the new Studio 60 show, and not meant as a slur against any actual Crazy Christians.)

Fonz · 2006-10-12, 11:16 AM

12-18 months before they're actually gonna go public, by then I will havce forgotten about it...

This thread reminded me I had some stocks in my account that were making pretty big losses the last few months. Checked them out and it turned out I was at +250 EUR so I sold em right away

2006-10-11, 02:36 PM	#3
lelahosting WHO IS FONZY!?! Don't they teach you anything at school? Join Date: Nov 2004 Posts: 49	I do not see this being bad for adult either unless they get scared because some christian group comes around saying ban the immoral adult transactions and they get afraid stock price will drop __________________ tim@lelahosting.com

2006-10-11, 03:29 PM	#6
JustRobert Bow Ties Are Cool Join Date: Jun 2006 Location: California Posts: 9,659	I agree with Jim on this. Most people, even those against the adult industry, usually look at the bottom line or their own personal return on investment first before making a final decision. __________________ Submit Your Galleries To The Erotic To Naughty Network!

2006-10-11, 04:40 PM	#7
virgohippy Madness is like gravity. All it takes is a little... push. Join Date: Feb 2006 Location: California Posts: 1,679	Just look at the number of mutual funds which invest in industries of sin, like tobacco and alcohol. Bottom line attitude = less funny business. __________________ ~Warm and Fuzzy.

2006-10-12, 08:52 AM	#8
Simon That which does not kill us, will try, try again. Join Date: Aug 2003 Location: Conch Republic Posts: 5,150	Maybe it would be a smart idea for adult companies and independent adult webmasters to buy up some of the Visa shares when they're available. It's be nice to have a voice at shareholder meetings. Plus every share owned by an adult webmaster is one less share the "Crazy Christians" can buy. -- (Note: Crazy Christians is a reference to a skit on the new Studio 60 show, and not meant as a slur against any actual Crazy Christians.) __________________ "If you're happy and you know it, think again." -- Guru Pitka

2006-10-12, 11:16 AM	#9
Fonz Former pr0n slinger. Join Date: Aug 2003 Location: Antwerp, Belgium Posts: 7,932	12-18 months before they're actually gonna go public, by then I will havce forgotten about it... This thread reminded me I had some stocks in my account that were making pretty big losses the last few months. Checked them out and it turned out I was at +250 EUR so I sold em right away __________________ See how I abuse little trees on my Shumi no Bonsai Blog

2006-10-11, 03:09 PM	#4
sspproductions Rock stars ... is there anything they don't know? Join Date: Jun 2006 Posts: 19	After reading that and having a cup of tea my gut reaction is this. Its a response to the gambling restrictions or they know the economys about to hit freefall and want to cash in before it does. In my limited knowledge it seems its illegal for US companies to process unless they are a US owned WTF is that meant to mean. Anyway splitting the EU off as a seperate company they will be able to route payments offshore as it where and avoid it being a US company doing the processing. As for the adult bit if the worse happens and they did rush through a adult law similar to the gambling and no one noticed till it was to late then it will be ok because there will be Visa EU, ccbill EU and verotel plus whoever else to handle it so just have a few bucks ready to by a off the shelf company somewhere nice and friendly like up here in the baltics. At the end of the day its all about the $$ the US cant afford for people not to spend money on porn or gambling mastercard didnt stop they just dont want it advertised to much. Just my take on the current climate.

2006-10-11, 03:13 PM	#5
Jim Banned Join Date: Aug 2003 Location: Mohawk, New York Posts: 19,477	Once public, Visa answers to it's stockholders. The only thing the stockholders will care about will be the money being made. If anything, this is good news.