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Some scenarios (in no real particular order): - A Zynga-like order: give back unvested stock or you're fired - There were "hidden" bank loans / lines of credi
by JonFish85 10y ago
Some scenarios (in no real particular order):
- A Zynga-like order: give back unvested stock or you're fired
- There were "hidden" bank loans / lines of credit that need to be paid back first. These may not be known to employees, but generally they are the first in line to be paid back.
- If the cash acquisition is assuming they hit some earn-out targets, there's a very, very good chance that they won't get 100% of the money, and in fact could get a lot less.
- If the investors had some sort of very tough terms where they get a 1-2x return before participating in the common stock, that could make this worth very little to employees.
- tommynicholas 10y ago#1 is the only one I can imagine (that was such a horrible situation at Zynga, I had family get hit), and given the founder, extremely unlikely. I understand why everyone wants a reason to be skeptical of this acquisition, but all signs point to a home run for everyone involved.