This research studies the affect of privatization and its methods on the newly privatized companies’ performance. The results revealed that there is a significant difference between the capital and asset structure for the privatized and state owned companies. Results also showed that the method of privatization has a significant effect on the Capital and assets structure of the company, and it differed significantly after privatization. On the other hand, the profitability of privatized companies increased after privatization and the method of privatization has a significant effect on the profitability. It was shown that selling the company to an anchor investor showed better profitability than privatizing the company through a public offering.