Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

America's many thirty-somethings

Jun 20, 2019

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Corner Office from Marketplace
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Tech
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Make Me Smart with Kai and Molly

Clorox, meet your activist investor

David Gura Jul 15, 2011
Share Now on:
HTML EMBED:
COPY

JEREMY HOBSON: Clorox has a buyout offer on the table this morning that values that company at $10 billion.

The offer comes from billionaire Carl Icahn, as Marketplace’s David Gura reports.


DAVID GURA: Icahn is worth billions, and he’s used that wealth to shake things up at some big businesses — like TWA, Texaco, and Yahoo!

DAMIEN PARK: He engages with the company, often times at the board level, and goes about trying to improve the value of those companies.

That’s Damien Park. He advises firms on how to deal with activist investors. Park says this trend has grown over the last few years.

PARK: There’s an enormous amount of cash on corporate balance sheets.

And that means investors like Icahn want companies to do specific things with that cash, like give money back to investors. Activist investors tend to buy between five and ten percent of a company’s stock, then they go its board with demands. And that can create controversy.

PARK: The controversy is related to whether activists are seeking short-term gains versus long-term value improvements.

Park says these days, it’s more common for them to stick around longer, helping to shape long-term strategy.

I’m David Gura, for Marketplace.

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.

Make a good investment!

Looking for a great deal?
Get ALL THREE of our new thank-you gifts when you donate $120.

This is a limited time offer – so act soon!