In addition to the majority control, there are two advantages of doing the convertible debt route. First, interest expenses are deductible and it will help to pay less tax and thus will have a better EPS. Second, the number of shares outstanding is smaller (as opposed to 100% equity financing) so there is a magnified effect on EPS. In future, when the company makes consistent profit Q over Q, it can be used to repurchase shares so in theoy, eventually, CEO can return to majority without any redemption. At that time, I am assumed that the sp will be much higher and split is possible.