I posted yesterday that TEAM invested $10 M into Zoom last year as a convertible note, convertible at the IPO price into shares of ZM.
At $36 share, Team would pick up about 277 K shares.
I found this information from the Zoom S1, page F22.
I keep seeing it mentioned that TEAM owns 5% of ZM (from a seeking alpha article I think). If this was true, it is a big deal, because a 5% stake would be about an $800 M value, and a $300M gain yesterday for TEAM.
I couldn’t find any documentation of it, so I wrote IR at TEAM.
Ian Lee (Atlassian’s head of IR) wrote back:
“Jim - we’ve only disclosed the $10m investment, as you noted.”
So it appears the 5% stake in ZM is incorrect. I guess it’s possible they have an investment that has not been disclosed, but unlikely.
The two seekingalpha articles refer to Zoom owning 5.1% of the Class A shares in the IPO. Either 21 or 24 million shares depending on if you count the 3mil allotment to the underwriters. So either 5.1% of 21 or 24 million. Total Class A + B shares comes to 258 million shares.
All-in-all they own less than half a percent of Zoom. 70-80 million worth of shares.
BUT
According to the S-1: As part of the strategic partnerships, we issued unsecured three-year convertible promissory notes in the principal amounts of $5.0 million and $10.0 million to Dropbox and Atlassian, respectively, which accrue simple interest at 2.75% and 5.0% per annum, respectively. Both convertible promissory notes are collectively referred to as “the notes” throughout the notes to the consolidated financial statements, unless otherwise stated. The notes will automatically convert into shares of Class A common stock upon an IPO at a conversion price equal to the IPO price
So according to that, about 285k shares, or 17 million. Not sure where the seekingalpha articles are getting their values from, apart from each other.
