Jonestown defense

Jonestown Defense

A defensive strategy by which the target company engages in an activity that might actually ruin the company rather than prevent the hostile takeover. Also known as a "suicide pill."

Notes:

The term refers to the 1978 Jonestown massacre, where a religious cult (the People's Temple) led by Jim Jones committed mass suicide in Guyana.

See also: Busted Takeover, Crown Jewel, Enterprise Value, Hostile Takeover, Management Buyout (MBO), Merger, Poison Pill, Sandbag, Saturday Night Special, Scorched Earth Policy, Shark Repellent, Sleeping Beauty, Voting Shares, Whitemail

---

Jonestown defense

An extreme defensive tactic employed by the management of a target corporation to prevent a hostile takeover. The defensive tactics are so extreme that they typically lead to the destruction of the target corporation. See: Suicide.

---

Jonestown defense

Defense against a corporate takeover in the form of a poison pill so strong that it threatens the survivability of the target company. The name comes from the mid-1970s Jonestown massacre.