Hacker News new | ask | show | jobs
by alexandernst 2595 days ago
So... what happens now with all the employees that have stock options?
2 comments

Went through an acquisition with Vmware... they converted the stock options to Vmware options that vested at the same rate and were worth the exact same based upon the acquisition price. If they had already vested, they just paid you out. This may depend on the deal though.
I've been through two acquisitions and part of the deal terms if the valuation of the acquiree's shares (which the cap table and liquidation preferences have a huge effect on).

First time my options were converted to options in the acquirer's company.

Second time they turned into RSU's.

They probably exercise their options and make some $ off the transaction.
It depends on which type of options. The exercise date could be fixed or variable. But you could sell the options at its current market if there is a market.
How so? They don't have any actual stock. They have options to stock.
Usually depends on the type of option. If they are 'double cliff' then the employee stock option will vest automatically, if they aren't then the emplyee will lose them.
I've never heard the term 'double cliff' before, can you explain?
I think they might mean "double trigger" acceleration, where the options vest automatically on change of control.
exercise the option = buy the stock