Remix.run Logo
Remix clone Hacker News
new | show | ask | jobsGithub
▲ niemandhier 10 hours ago

I could not figure out if „cash“ means literally cash or figuratively cash in the sense of “no trade in shares”.

Will there be a truck full of paper money or not?

▲adam_arthur 10 hours ago | parent | next [-]

Implies they will pay cash value to equity holders as opposed to issuing NVDA shares.

(Electronically)

▲SecretDreams 9 hours ago | parent [-]

Is this to somehow screw the employees with RSUs or what?

▲wmf 9 hours ago | parent [-]

No, it doesn't really matter if they pay in cash or stock. If you think NVDA has room to run you're welcome to use your buyout money to buy NVDA on the open market.

▲SecretDreams 8 hours ago | parent [-]

Well, this isn't framed as a buyout/takeover, so I was curious how existing RSUs would be cashed out?

This deal is framed as IP transfer and talent transfer without owning the full company. Probably to skirt anti trust, among other things.

▲adam_arthur 8 hours ago | parent | next [-]

I'm not sure in this specific case. They could choose to pay the employees some portion of the funds.

If not, the owners are likely liable to be sued for "selling in effect" without paying equity holders.

Presuming the company becomes a defacto subsidiary of Nvidia (even if not legally so)

My guess, without researching it, is they will compensate existing equity holders to avoid that possibility. I mean the valuation multiple is enormous, it's worth it simply to derisk the legal aspect.

▲wmf 8 hours ago | parent | prev [-]

For vested RSUs it's likely that the Groq husk will pay out the $20B as a dividend or buyback or something. I don't know if unvested RSUs are accelerated or just canceled. Of course the employees will receive new RSUs when they join Nvidia.

▲lotsofpulp 8 hours ago | parent | prev | next [-]

Unless one is worried about the government, no one ever means paper money.

▲diogenescynic 10 hours ago | parent | prev [-]

It's the latter. They'll send a wire.