Viddy returns $18M of its $30M Series B

Re:Viddy returns $18M of its $30M Series B by ghshephard on Tuesday May 07, 2013 @10:07PM (#5672092)

It's usually more likely to happen when you have a board that is firmly controlled by the people who've invested the money in the company, and, when they see a significant change in market conditions (or makeup of the company) - decide that their ROI will be greater if they withdraw some of that investment.

I'd be interested in knowing, though, what the precise financial transaction looks like. Dividend? I would think that they would try and avoid those tax consequences.

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Re:Viddy returns $18M of its $30M Series B by ef4 on Tuesday May 07, 2013 @10:15PM (#5672122)

IANAA, but "return of capital" is non-taxable.

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Re:Viddy returns $18M of its $30M Series B by ghshephard on Tuesday May 07, 2013 @10:19PM (#5672135)

Thanks - http://www.investinganswers.com/financial-dictionary/investi...

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Re:Viddy returns $18M of its $30M Series B by jcampbell1 on Tuesday May 07, 2013 @10:11PM (#5672108)

My guess, it is treated like a stock buyback of preferred shares.

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