How do you prevent a hostile takeover? In NCsoft‘s case, you buy something. Specifically, you buy a large portion of shares from Netmarble while also engaging in a large-scale swap of stock between the two companies to provide a buffer against Nexon‘s moves toward a hostile takeover. The deal in question involved a purchase of $345 million worth of Netmarble shares along with a stock swap worth roughly $635 million, providing a larger financial hurdle for Nexon to jump if it still wants to take NCsoft by force.
Nexon is currently the largest single shareholder in NCsoft and recently put forth a list of demands for the company. A hostile takeover is still possible during NCsoft’s next shareholder meeting in March.[Source: MMO Culture, Thanks to Paul for the tip!]