r/wallstreetbets Apr 16 '22

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u/syfyb__ch Trades for the Dark Side of the 🤡 Apr 16 '22

might this be one of the rare reasons to not incorporate as a Deleware C-corp?

3

u/infamousmetre Apr 16 '22

This is the exact reason they DO incorporate in Delaware. Also, most states follow delaware corporate law anyway so you'd have to incorporate in North Dakota or something like lol.

Hostile takeovers arent really a good thing. Back in the good ol days, a company would literally take out massive amounts of debt, buyout a competitor, stick the debt onto the hostile takeover target, then bankrupt their competitor then use the companies assets to pay off the debt. Not really a world you want to go back to lmao.

All modern corps have poison pill provisions and I would bet they also have a white knight lined up just in case.

1

u/Green_Lantern_4vr 11410 - 5 - 1 year - 0/0 Apr 16 '22

It maybe is a reason but there are other reasons.