Comment by margalabargala

Yes, and it goes to the same people that the first 1.7B goes to.

The order of operations is not "everyone breaks even, then we start distributing profit".

The order of operations is "people with preferred stock (i.e. investors) get all their profit, and then employees get whatever's left over".

The fact that the amount of investment money put in is less than the sale price is meaningless. If you are an employee with options at a strike price of $5, and the common stock price is now $2, you're screwed.