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Finance: What is a Pac Man Defense? 21 Views
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Description:
A Pac-Man defense is a strategy for defending against a hostile takeover. Or...against unwelcome houseghosts.
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Transcript
- 00:00
Finance a la shmoop what is a pacman defense?
- 00:05
[Pacman eating] yeah well wacka wacka to you too...Hostile takeovers are rare in real life not so
- 00:12
rare in pac-man but when they do happen there exists a whole cadre of strategies
- 00:17
behind defending them at least from the company's perspective being taken over
- 00:21
there and pac-man defense is inarguably the best named strategy of all of
Full Transcript
- 00:27
them in essence what happens when we'll say an angry competitor let's call him
- 00:32
blinky Inc tries to buy an angrier competitor let's call them inky inc.
- 00:38
well blinky would be buying shares of inky in the open marketplace filing to [Blinky and inky appear]
- 00:44
go past 15% ownership and eventually own enough shares to elect its own Board of
- 00:49
Directors and make a takeover happen well in a Pac Man defense as blinky is
- 00:54
snarfing up shares of inky, inky buys shares of blinky sort of turning the
- 01:00
tables you know like this and while you're gobbling up that competition and [Pacman gobbling competition]
- 01:04
don't forget to eat a bunch of cherries or a strawberry every once in a while
- 01:07
because you know you still need your fruits and veggies
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