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Gold/Mining/Energy : Net Shepherd Inc. (WEB) on ASE -- Ignore unavailable to you. Want to Upgrade?


To: reg who wrote (966)3/29/2000 1:44:00 AM
From: WhatsUpWithThat  Read Replies (1) | Respond to of 1252
 
Reg

As Crazy was pointing out to me recently as an example, 20% of Answers.com has been assigned as compensation to executives and key employees, a very common mechanism in startups (saves cash on salaries, and creates strong ties between these individuals' interests and the company's).

They'll then go to the IPO with some portion of the remaining shares, and as you say, how much is anyone's guess.

Will they simply then distribute the remaining Answers.com shares post IPO to NSI shareholders directly, the way AT&T did with Lucent? I doubt it; I see them retaining the shares within NSI, with our NSI share price reflecting the doubtless substantial increase in the Answers.com share prices post IPO.

In other words, when Answers.com IPOs, NSI will still hold a significant portion of the shares and as Answers.com share prices rise NSI's holding will rise...and NSI's share price will rise in concert.

WUWT