ShmoopTube

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what is shark repellant? So yeah for sharknado 11 the [empty movie theatre showing Sharknado]

00:08

schmoopy we just gave away the penultimate scene yeah sorry about that [shark getting sprayed with shark repellent]

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well in the financial world however shark repellent is a fancy $5 word for

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companies trying to fend off corporate raiding sharks like this guy trying to

00:23

take them over well companies deploy all kinds of tricks to dilute their shares [businessman attacked by sharks]

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change their business dynamics create friction at the board level and

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generally make themselves unappetizing to the Sharks hoping to eat them 4x and [businessman spraying shark repellent over their suit]

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sell them for 2x4 years later well you'll hear of specific shark repellents [shareholder rights plan]

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like poison pills and partner killer bees ie law firms that specialize in

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hostile takeover defenses notion of a company currently trading at 40 bucks

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getting a hostile takeover bid for $52 a share and somehow that being perceived

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as just awful and terrible and bad is strange to many in the Wall Street [office workers complaining]

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investing public if someone is really willing and able to pay a big premium to

01:07

buy a given company then why shouldn't it be sold to that new owner well in a

01:12

lot of cases the new owner will replace a whole lot of laborers with robots save [McDonald's drive-thru worker replaced with a robot]

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a whole lot of money for shareholders and make the company more valuable to

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shareholders so that's good for shareholders but not good for the slew

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of laborers who are all now out of work and what do they do well the country's [ex-McDoland's worker crying]

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taxpayers and typically pay for them in unemployment forms one way or another so [money going towards food stamps, unemployment checks and heathcare]

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it's all an ugly political mess but the bottom line companies generally exist

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for the financial benefit of the people who own them ie their shareholders and

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if the stock market isn't giving the company a reflectively high value then

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why shouldn't the company sell to someone who will and why is it the

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company's owners job to employ laborers who could be replaced by robots cheaper [robot serving McDonald's drive-thru]

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better faster hmm the point is that being that sharks well they aren't

02:04

always evil [shark boops guy off screen]

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