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<blockquote data-quote="doogx" data-source="post: 8943587" data-attributes="member: 6863828">The company itself does not lose money when the share price tanks. The money is lost (and they're paper losses, until someone sells for less than the purchase price) by the shareholders. In Hasbro's case, <a href="https://money.cnn.com/quote/shareholders/shareholders.html?symb=HAS&amp;subView=institutional" target="_blank">it seems that the company is almost 90% owned by mutual funds and other institutional investors</a>. Some of the individual shareholders may be company executives or Directors, but the company itself retains none of its stock.The shareholders — the real owners of the company — put pressure on management to improve financial performance, who then in turn may panic and make idiotic decisions like the ones that resulted in the Great OGL Crisis of 2022-23.Your statement, while it contains some truth, is nonetheless somewhat misleading and ill-informed. The point is not to &quot;avoid hostile takeovers,&quot; the point is to keep the shareholders happy, so that they don't fire the Board of Directors, who will first fire the company managers before they allow themselves to be voted out by the shareholders. This is not directly related to &quot;avoiding hostile takeovers&quot; so much as driving up the stock price so that any shareholder who wants to cash out can do so at a healthy profit. In this case, I recall it being reported with some authority that Hasbro's shareholders had been pressuring management to do a better job of 'monetizing' D&amp;D. The idea being that if Hasbro was making more money off of the brand, Hasbro's stock would go up in value. The statement in question is nothing more than Hasbro top managers trying to save face and admit to being idiots only as much as they have to. It's as simple as that.</blockquote>

[QUOTE="doogx, post: 8943587, member: 6863828"] The company itself does not lose money when the share price tanks. The money is lost (and they're paper losses, until someone sells for less than the purchase price) by the shareholders. In Hasbro's case, [URL='https://money.cnn.com/quote/shareholders/shareholders.html?symb=HAS&subView=institutional']it seems that the company is almost 90% owned by mutual funds and other institutional investors[/URL]. Some of the individual shareholders may be company executives or Directors, but the company itself retains none of its stock. The shareholders — the real owners of the company — put pressure on management to improve financial performance, who then in turn may panic and make idiotic decisions like the ones that resulted in the Great OGL Crisis of 2022-23. Your statement, while it contains some truth, is nonetheless somewhat misleading and ill-informed. The point is not to "avoid hostile takeovers," the point is to keep the shareholders happy, so that they don't fire the Board of Directors, who will first fire the company managers before they allow themselves to be voted out by the shareholders. This is not directly related to "avoiding hostile takeovers" so much as driving up the stock price so that any shareholder who wants to cash out can do so at a healthy profit. In this case, I recall it being reported with some authority that Hasbro's shareholders had been pressuring management to do a better job of 'monetizing' D&D. The idea being that if Hasbro was making more money off of the brand, Hasbro's stock would go up in value. The statement in question is nothing more than Hasbro top managers trying to save face and admit to being idiots only as much as they have to. It's as simple as that. [/QUOTE]

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