4 ms·

Probably the stock liquidation preferences didn't extend to your class of stock. Also debt.

• dehrmann 7y ago
  Right; debt holders get paid out before shareholders...which is only fair. Debt covers things like rent and employee wages--owners of the company should get paid out last.
  • CalChris 7y ago
    Agreed. Debt is senior to any stock but not all stock is equal; there’s liquidation preferences and who is at the table. Employees usually get the shaft even if founders technically hold common. Employees aren’t at the table. The article mentions this. It’s a subtle point about prisoners dilemma. In an acquisition, there is no sense of equity, just interest.