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Implies they will pay cash value to equity holders as opposed to issuing NVDA shares. (Electronically)
by adam_arthur 10mo ago
Implies they will pay cash value to equity holders as opposed to issuing NVDA shares.
(Electronically)
- SecretDreams 10mo agoIs this to somehow screw the employees with RSUs or what?
- wmf 10mo agoNo, it doesn't really matter if they pay in cash or stock. If you think NVDA has room to run you're welcome to use your buyout money to buy NVDA on the open market.
- SecretDreams 10mo agoWell, this isn't framed as a buyout/takeover, so I was curious how existing RSUs would be cashed out? This deal is framed as IP transfer and talent transfer without owning the full company. Probably to skirt anti trust, among other things.
- adam_arthur 10mo agoI'm not sure in this specific case. They could choose to pay the employees some portion of the funds. If not, the owners are likely liable to be sued for "selling in effect" without paying equity holders. Presuming the company becomes a defacto subsidiary of Nvidia (even if not legally so) My guess, without researching it, is they will compensate existing equity holders to avoid that possibility. I mean the valuation multiple is enormous, it's worth it simply to derisk the legal aspect.
- wmf 10mo agoFor vested RSUs it's likely that the Groq husk will pay out the $20B as a dividend or buyback or something. I don't know if unvested RSUs are accelerated or just canceled. Of course the employees will receive new RSUs when they join Nvidia.