Corporate Defense Strategies Against Takeovers

Companies will literally poison themselves to avoid a hostile takeover. It’s a real strategy

called a "poison pill." When an unwanted buyer comes knocking, the target company

can let its shareholders buy tons of new shares for super cheap. This makes the company

way more expensive and a total headache to acquire. It's a corporate battle!

Sometimes, a company will even find a "white knight"—a friendly buyer—to swoop in and save

them from a "black knight" attacker. But these defenses can backfire, like when Yahoo

rejected Microsoft's massive offer and ended up losing billions in value.