alt Hacker NewsI’d love to know the internals here. Is equity being split? Seems like a legal minefield to split a company like this.
Amp was built by Sourcegraph, so I assume all investors and employees of Sourcegraph now get equity in Amp?
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foota • last Monday at 10:59 PM
I have no insight, but I would assume it's a 1-1 sort of split, that is that everyone that previously had one share of sourcegraph now has one share of sourcegraph and one of amp? That seems like the least legally fraught way to do it.
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No insight here either, but I would guess it is a spin-off ... mostly because it is a US company and in the US spin-off's are generally tax free to both company and shareholders.
Spin-off is where the parent company creates a subsidiary and distributes the shares in the subsidiary to the existing shareholders. So the shareholders end up holding shares of two companies. Share allocation is done on a pro-rata basis so each shareholder still has the same exposure they did before.