as Postmates failed going to IPO due to its aquisition by Uber, now many Postmates employee who joined them by looking at the luring “stock options” numbers might be in soup now? they may almost get the money equivalent to strike price ? Another bad example for not getting tempted to “stock options” while taking the job offer. #postmates #uber #ubereats #grubhub #doordash
I guess the key here is “1 UBER stock = X number of Postmates options” ...I guess X is the key here. But I highly doubtful that it might not be a good deal for postmates employees compared to IPO, but something they will get to convert their paper money into real money though ... but... startup companies usually attract people by quoting “IPO” price for luring people
Yeah, it’ll probably be about a .65 ratio is my guess. In all honesty, that’s still better than an IPO. Postmates has such little market share, I doubt their stock would have/maintain any value on the public market.
Why .65 ratio?
Since this is m&a, just because it's an all stock deal, doesn't mean everyone converts to common, although this might be likely since the valuation was bumped above the last round and they may want to also retain employees. Also, since an IPO is highly unlikely investors probably wanted this deal done. Need some details from current employees.
Typically it all converts to common when a public company does the acquiring
Did you read any of the details that the articles published? According to the official Uber article on the acquisition, it’s an all-stock acquisition. While I’m by no means an expert on this subject, what that usually means is that the employee options will be converted into Uber stock. I’m not quite sure how the preferred options will play into this, and what will happen to unvested options. Either way, the acquisition is probably very beneficial to Postmates employees as far as their options go.