[daniel_levine]

That's not how simple preferred works. That would be participating preferred. And I'd strongly suspect this is simple preferred, as participating preferred is exceptionally rare for Silicon Valley-type companies (it does happen though).

Investors get either the 1x or convert to common. So the most recent investors will take their 1x ($72mm if public sources are correct, which might include some shares bought by previous investors), but previous investors are likely to convert to common if their price per share of purchase is below the acquisition price. But even in your simple example, the $250mm is only split between founders and team, the shareholders who take their 1x are done prior to that point.