Well, yes and no - assuming they can be sold on the exchange, they're real shares, and they have value, but only to the extent that the market is willing to pay for them. Since they're closely held they are effectively not part of the liquid market - and you're right that that value is not the same as current open market value and is effectively much lower - but if they were to become part of the liquid market by way of being sold on the exchange, even in small 10% blocks, the market price would certainly tank very quickly (since there would be much more supply than total current demand.) There is value there. But it's nowhere near the current bid price - at least, not right now. Their value will be better determined when the company is sold - as all shares, whether in the market or privately held, would be purchased at the same price. (Presuming a company sale follows the normal convention.)