ShmoopTube

00:00

Finance a la shmoop what is a bear-hug? well you remember old uncle [Uncle Larry appears]

00:08

Larry right the former 350 pound Olympic wrestler who could braid his own chest

00:15

hair yeah kind of gross but no that's the guy well he got out of the bathtub [Larry in a bath tub]

00:19

once while y'all were at your ski cabin in Wyoming and a real bear saw him

00:24

through the window and well simply put fell in love yeah that's how

00:29

Bears do it well Larry went over to the bear family [Larry wearing bear fur]

00:31

for Christmas and when he walked in a little bear dude guy screamed Mom, there's a

00:37

human in the cave but Larry fit right in he hugged each of the Bear Jamboree [Larry hugging a bear]

00:43

family really hard they wanted to call it a human hug but well somehow the name

00:48

didn't stick so uncle Larry is that guy well he hugged at Christmas

00:52

bears humans and whatever he hugged hard.. hard enough to squeeze the air out of

00:57

anyone or anything and if he suddenly let go well you had a really hard time [Larry lets bear go and bear struggles to breathe]

01:01

catching your breath well that's the setting of a Wall Street bear hug, a big

01:06

hairy powerful player often recently bathed ideally yeah not still in the

01:11

bathtub making a bid to buy a weaker competitor at a price substantially

01:17

higher than the current market price of the target it's a hug and the target had [Larry chasing a man for a hug]

01:23

better hugged back and be acquired or else why because if the bear hugger

01:29

suddenly lets go while the target falls back from the $28

01:33

a share of the bear is offering to buy it falls all the way back to the 15

01:38

dollars it was trading at before all that you know hugging started and if the

01:42

bear walks away and the company just languishes at 15 bucks a share without [Bear walks away with company]

01:47

any other bidders.. the board gets their pants sued off by shareholders who

01:51

are just "robbed" of $13 a share in gains likely meaning that the

01:56

entire company reboots and in hindsight well that it would have been oh so much

02:01

better to let Larry just move into the cave where you know he really felt at [Larry in the cave with bears]

02:05

home with everyone there check out those salmon..

Full Transcript