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They don't need the cash necessarily but the early employee options were expiring so they needed to go public
by mrgordon 6y ago
They don't need the cash necessarily but the early employee options were expiring so they needed to go public
- subsubzero 6y agoThis. A large number of employees were granted RSU's and these have the stipulation that the company goes public at a certain time.
- kevindeasis 6y agoim not familiar with this, i havent read much about early employee stock options, what does this mean?
- mrgordon 6y agoThe stock options were written to expire after ten years and the ten year expiration date was coming up. Airbnb wanted to IPO to ensure these early employees got properly rewarded for their huge contributions. I’m not sure exactly why they couldn’t just grant replacement options but I believe this would cause issues with the cost basis / additional tax and they probably can’t issue equivalent options to some of those people who no longer work for them due to IRS regulations
- quickthrower2 6y agoDo they need an ipo to exercise them? What about private sale of shares?