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If they are currently valued at $1300 each with a private company valuation of $1B that means: You have to pay $1300 per share to acquire them and have no abili
by daveguy 10y ago
If they are currently valued at $1300 each with a private company valuation of $1B that means: You have to pay $1300 per share to acquire them and have no ability to sell them.
If the company goes public or acquired the company will have to be valued more than $1B for the options to be worth anything to you.
Honestly you shouldn't ever consider options to be worth anything more than the paper they're printed on until an IPO or acquisition.
Options (before IPO) are mainly a gimmick by management to keep people from jumping ship (they are typically dependent on continued employment). They cost the company virtually nothing. After IPO they have easily determined value.
- ThomPete 10y agoDoesn't that depend on whether they are RSU's? Then there is no strike price as far as I remember only capital Gains.
- charford 10y agoAn RSU is not the same as a stock option.
- ThomPete 10y agoNo but I wonder if that's what he got instead the price taken into consideration.
- Veratyr 10y agoRSUs are taxed when they're granted at the same rate as income but with the withholding of a bonus. Capital gains tax only applies to the difference of sell price and grant price.
- calcsam 10y agoThe main thing we need more detail on is whether the $1300 number is the per-share preferred share value (= $1B / number of shares or a per-share 409a valuation / strike price.
- tazoo 10y agoIt is the strike price.