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Ask HN: I own stock for a company just bought by Oracle, what is my stock value?

10 points by padseeker ↗ HN
I used to work for BigMachines in Chicago and have nearly 2000 shares. I have no idea what this means for the value of my shares. Any who can explain this to me? I'm clueless here.<p>http://www.marketwatch.com/story/oracle-buys-bigmachines-2013-10-23

9 comments

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nicholas73
The article doesn't say. You need to ask your company about it.

Things to check are if they company was bought for cash or shares, which can determine which you receive. Second, check if your shares have vested, meaning whether they are actually yours yet and in that case whether Oracle decides to let you have them or discard them.

padseeker
While I cannot say for certain it should be known that in order to get the shares I had to write a check to get them. So I assume that since I actually handed over money that the deal is legit, or at least a lot harder for Oracle to say "you get nothing". But who knows....
icedchai
That doesn't mean anything. I wrote a check for some shares back in 1999.

The company was "bought out" many years later. However, the shares were worthless, since it wasn't for enough to pay out anything to the common bag holders, only to some of the preferreds.

padseeker
The company is doing pretty well so I think that might be hard to pull off. But then again I'm no accountant so it would seem anything is possible. Pull enough tricks and perhaps it would look like there is nothing left for anyone. I will delay buying that solid gold yacht for the time being.
pathy
I don't see the price mentioned anywhere in the documents published but I may have missed it.

I expect that you will get a notice about the acquisition in the mail, with more details. Otherwise you can always call the CEO or CFO and ask about the acquisitions and what it means for your shares and how much they are worth.

kenrose
Depending on the size of the company, the best person to ask would be the CFO or CEO of BigMachines. They may be super busy at the moment though given the recent purchase. :-)

That said, to answer your question of "am I now a millionaire?", there's some info you need about your shares and the deal:

1) What class do your shares belong to? Are you shares common shares (they probably are)? Are there any preferred shares (there probably are if the firm took VC money). In any liquidity event (like a company getting bought), preferred shareholders get paid first, then common shareholders.

2) You have 2000 shares. How many shares in total are there?

2) What are the terms of the deal? Cash? Cash and stock? How much? The press release doesn't mention it.

Note that as a shareholder, you may find out the amount. Please do not share it here. If it wasn't mentioned in the press release, it's likely not meant for public consumption.

padseeker
1) I am certain they are common shares, and I do believe that there are preferred shares as they did take VC money. The company started pre 2000 so they've been around the block.

2) I have no idea how many shares there are, but I know it is more than a million, and probably more than 10 million.

3) I have no idea. You are right there is nothing in the press about the terms of the deal.

I am certain I am not a millionaire. But the ability to put a down payment on a house might be nice. I don't know if I just have to wait a while to figure out what all this means.

JoachimSchipper
Don't count on "house" money either; if there are just 10 million (all) common shares and the company sold for $10 MM, you'll (eventually) be the proud owner of $2 000, or the equivalent in Oracle shares.
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