How did the equity packages convert between LinkedIn and Microsoft during the acquisition?
For example did a LinkedIn engineer with $200k of LinkedIn RSUs get that grant directly converted to $200k of Microsoft RSUs? Prior to the Microsoft announcement, LinkedIn shares were trading at $131. Since Microsoft bought LinkedIn at $196 per LinkedIn share, LinkedIn employees should have instantly seen their equity packages go up by 50% from $131 per share to $196 per share. Is this correct?
MSFT was $59.882 at conversion, and LNKD was purchased at $196. The conversion ratio was 3.2731. So for every unvested LNKD share they gave you 3.2731 MSFT shares. Also people saying it was a great gain, it really wasn’t that great at the time. LNKD was actually recovering pretty well by May and I think would have reached $196 anyway by end of the year. The stock price crashed because we gave mediocre guidance but we were exceeding that guidance anyway. Obviously in hindsight MSFT has done excellent and we are probably better off.
Existing LinkedIn employees essentially just broke even. Don't forget that LNKD fell by half before Microsoft swooped in and saved us. So the 2x was really just compensating for the huge drop. Employees who joined during that 3-4 month window made bank I'm sure, but they were just very lucky. None could have planned for that roller coaster.
Correct, ms was 48 dollars at that time
Good for them
Damn.. that's basically making mega bank considering high stock grants of linkedin and current ms stock price.