Discuss Go2Net's acquisition of our beloved SI Message Board

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Pastimes : Discuss Go2Net's acquisition of our beloved SI

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To: Sr K who wrote (356)	5/13/1998 2:50:00 PM
From: SI Brad	Read Replies (1) of 446

Bernard, Thanks for your concern. We were fully aware of the proposed changes during the negotiation process. A large option pool is common with companies that IPO soon after formation. Yahoo/Excite/Lycos/Infoseek all have large employee option pools. The additional options won't necessarily ever be granted, but it adds flexibility to the company's ability to make important hires and acquisitions 1, 2, 5 years down the road. Options are granted at the current price of the stock, so incremental dilution to shareholders occurs only if (1) the stock goes up from the point of grant and (2) the employee stays with the company long enough for the options to vest. As for authorized shares and par value, I don't believe there is much significance...the numbers are largely arbitrary. Again, it gives the company more flexibility to split the stock, make acquisitions, etc... Brad

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