Ok, Google can pay $1.2B to the CEO and key employees to get them to walk. The other $1.2B is for the Windsurf IP and it cannot go directly to the investors. It has to go through the company where it is first revenue and then an asset.

But Windsurf could distribute profit at this point before the Cognition deal. I guess this is where the preference rights got exercised. The tweet from employee #2 said his stock wasn't worth anything. Actually, he got preferenced out of the $1.2B in dividends.

Then came the $250M Cognition deal. He got preferenced out of the proceeds of the Cognition deal as well.

According to TechCrunch it was direct to investors: https://techcrunch.com/2025/08/01/more-details-emerge-on-how...

The company can also issue a share buyback. Doesn't have to be profits. And you're right about the preference rights.

Employees who haven't vested their shares can't complain/enforce tag-along/sue for minority investor rights.