Tivus, Inc. (TIVU)

[NicPlatoNic]

If that were to happen, after a suitable amount of growth on the part of Tivus, our shares really would become worth multiple dollars, no matter how diluted they were to become (up to a point, of course).

A1 (or anyone else), why do you say this?

I am still unsure of how a buyout even works with respect to us 'common' (stock) folk.

Does the buyer buy our shares?
Everyone's shares?
Only buy from some of us? If so, how? First come, first served?
If the latter, what happens to those who miss the offer?

Or do us shareholders just become shareholders of the new company?
If so, do we hold the same number of new company shares as we did TIVU shares? Or are we just exchanging for an equivalent dollar amount in the new company's shares?

I guess the summation of my confusion is just to ask precisely HOW (i.e. the mechanics) shareholders profit from a buyout.

This has come up before, I know, but I remain unclear on it.

A1, I'm assuming that you grasp all this based on your prediction above.