Companies Face Dutch Squeeze Out

(Ping! Zine Issue D01) – Being a hosting company these days can be challenging. As CTO of BackupAgent, I meet many business owners of hosting companies. Based on my conversations with many of those business owners, the rise of cloud computing is providing them with a challenge of unprecedented size. They find themselves in a process, which can ultimately be compared with the Dutch squeeze-out.

In the endgame of a Dutch squeeze-out procedure, a major shareholder (+95%) can force out a minor shareholder when selling the company. However, the prior maneuverings and positioning anticipating such an event is what really counts. Shareholders gather around to work with the likely winner and business owners are forced to make choices way before such a squeeze-out might take place. Only this time it is not about company shares, it’s about market share.

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