Finance: What is a Pac Man Defense?

A Pac-Man defense is a strategy for defending against a hostile takeover. Or...against unwelcome houseghosts.

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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