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According to the S-1: They are paying out about $400m/yr to preferred shared holders, which will be wiped clean on IPO (preferred shares convert to common), all
by jy1 3y ago
According to the S-1:
They are paying out about $400m/yr to preferred shared holders, which will be wiped clean on IPO (preferred shares convert to common), allowing the company to retain these earnings.
Under "Undistributed earnings attributable to preferred stockholders"
- tdullien 3y agoIsn't that unusual for normal venture backed companies? I know preferred shares with high dividends as debt-like instruments for financial companies, but ... are there venture investments that expect dividend payments?
- kamikaz1k 3y agoNew to this stuff, but why are they paying anything to these preferred shareholders?
- jy1 3y agoLikely the investors negotiated the terms in return for funding.