Stripe Plans to Go Public in Next Year or Make a Deal to Resolve Employee Stock Squeeze

Stripe plans to either go public or make a deal that will allow employees to sell stock within the next year, the company told employees and investors Thursday, moves that would be aimed at easing a looming stock crunch for some veteran employees.

The company is considering both a direct listing and a private-market transaction that would give employees liquidity in the next 12 months, according to an email sent to employees. Stripe scheduled a company all-hands for Friday to discuss the options. The company hired Goldman Sachs and JPMorgan to help drum up interest from investors.

The potential maneuvers are aimed at resolving a lingering problem for Stripe: Some of its veteran employees hold restricted stock units due to expire soon, meaning a big piece of their compensation could evaporate without action from the company. The Information first reported about the impending stock squeeze for employees in September.

The process is more likely to result in Stripe raising new capital privately, rather than a public offering, two people familiar with the matter said.