Public investors buy out private ones in an IPO

Posted Apr 20, 2004 18:08 UTC (Tue) by rjamestaylor (guest, #339)
In reply to: Lindows goes for an IPO - a detailed look by mmarsh
Parent article: Lindows goes for an IPO - a detailed look

I don't see the payment to Robertson as particularly troubling. He used some of his personal money to get the company going, and now that it's going public, and hence no longer "his", it seems reasonable to reimburse him for the seed money so that there's no further entanglement

In an earlier post I alluded to the use of proceeds as "reimburse Michael fund" and I agree with you that buying out his position is not suspicious or unethical, but is how IPOs work: private investments are recouped and private ownership is thusly transferred to public investors. I Just wanted to clarify that I didn't mean to imply anything shaky was going on.