Problem:
In an effort to take the firm private, Cox Enterprises announced on August 3, 2004 a proposal to buy the remaining 38% of Cox Communications' shares that they did not currently own for $32 per share. Cox Enterprises stated that the increasingly competitive cable industry environment makes investment in the cable industry best done through a private company structure.
Required:
Question: Why would the firm believe that increasing future levels of investment would be best done as a private company?
Note: Please show the work not just the answer.