I’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?
Amp was built by Sourcegraph, so I assume all investors and employees of Sourcegraph now get equity in Amp?
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.
the good thing is that you afterwards the cap table of the subsidiary or the spunoff can evolve (ex: waymo / amp can raise money independent of the parent company).