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> All proceeds will be used to help Stripe employees cover tax obligations related to the pending expiration of restricted stock units, plus to fund a new stock
by vosper 4y ago
> All proceeds will be used to help Stripe employees cover tax obligations related to the pending expiration of restricted stock units, plus to fund a new stock tender offer for current and former employees.
> The stock tender is voluntary, with employees eligible to sell as few or as many vested shares as they want (i.e. zero-100%).
This seems like they're doing their employees a solid here. But I have a stupid question: who's the buyer for the shares? I'm guessing it's Stripe, with the money they raised. Then where do the shares go - are they allocated to the investors who just funded this raise, or are they destroyed so that the value held by the remaining shareholders increases?
Or do we just not know?
- stanleydrew 4y agoPresumably the new money is in exchange for some newly-created class of preferred shares. Stripe holds the cash until it repurchases common shares from employees or any other holders, and those shares would go back into the unallocated common stock pool I'd assume. So yes, I'd think the only way this works is for Stripe to be the purchaser.