Boardroom Defense Tactics Against Hostile Takeovers

Your company’s board can legally sabotage a massive payday just to stay in power.

It is called a poison pill and it is absolutely ruthless. If a hostile billionaire tries to buy your

company and pay you a huge premium, the board can flood the market with discounted shares.

This dilutes the buyer and kills the deal instantly. Netflix actually did this to stop

an activist investor. They can even use a Pac-Man defense and try to buy the attacker instead.

Unless the company is officially for sale, courts usually let directors block

the bag to protect their so-called long-term plan.