Monday, June 27, 2011
Skype - and its investors - are continuing to get bad press for their repurchase of stock options from employees let go immediately prior to the close of their sale to Microsoft. Here's Techcrunch's take on it. Felix Salmon also weighs in. Turns out that options issued by Skype - and the shares purchased pursuant to those shares - were subject to repurchase rights by the company. That makes them worth ... well ... not very much. I tend to agree with Arrington. Once it becomes common knowledge that private equity invested firms treat options this way, it will make it more expensive for private equity portfolio firms to hire employees. End of story.