IPO Closing Window Hurts CMGI?

from the stuck-at-the-gate dept

Wed, May 10th 2000 1:59pm — Mike Masnick

Forbes takes a quick look at all the CMGI backed companies that have had to hold off on IPOs due to the current market conditions. CMGI had a bunch that were ready to go, and now there are questions of what all those companies will do now. Will they try to be acquired, or will they just suck down more money and wait for a new IPO window to open?

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Ed, 10 May 2000 @ 3:15pm

CMGI job cuts
CBS Marketwatch is reporting that CMGI has been making quiet job cuts at AltaVista, MyWay.com, and another unit.

What happens to the stock options of employees of pre-IPO companies when they're laid off? The only experience similar experience I had was with a company that was already public. Under that plan, any in-the-money options were instantly vested and cashed out in the event of an involuntary separation.
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- Mike (profile), 10 May 2000 @ 3:54pm
  
  Re: CMGI job cuts
  Well, as I understand it, generally, an employee has 30 days following a layoff to decide whether or not to purchase any vested options. You can certainly still own stock in a company that hasn't gone public, you just can't trade those stocks on the public market. In some cases I've heard of the company offering to buy back the vested options.
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