Takeover
TAYK-oh-ver
/ˈteɪkˌoʊvər/
An act of gaining control of a company by buying most of its shares.
Often implies a change in control or management, and can be 'friendly' (with board approval) or 'hostile' (against board wishes). It emphasizes the transfer of control.
The story behind the word. The word 'takeover' is a straightforward English compound, combining 'take' and 'over.' It emerged in the early 20th century, reflecting the direct action of one entity asserting control 'over' another. It's a very literal description of the process: someone is taking control.
Word relationships
- Acquisition: Very similar, but 'takeover' often emphasizes the act of gaining control, potentially against resistance.
- Buyout: A specific type of takeover where the existing management or a private equity firm buys the company.
- Divestiture: Selling off a part of the company, rather than gaining control of another.
- Independence: Maintaining separate control and ownership.
Commonly confused with
- Merger: A takeover is one company gaining control of another, while a merger is typically a more equal combination of two companies.
Word family
- take over (verb): To assume control of something.
Collocations
- hostile takeover
- friendly takeover
- successful takeover
- takeover bid
- takeover target
Example sentences
- "The unexpected takeover bid sent shockwaves through the stock market, causing the target company's shares to surge." Reporting on corporate news.
- "The CEO defended the company's aggressive takeover strategy, arguing it was essential for rapid expansion into new markets." Discussing business strategy.
Memory hook
Someone 'TAKES OVER' the company's control. TAKE control OVER.
When not to use
While often synonymous with 'acquisition,' 'takeover' is less suitable for situations where the target company's management is fully on board and the transaction is purely about combining resources rather than asserting control.
Fun facts
- The term 'takeover' can also be used in non-business contexts, such as a military takeover or a hostile takeover of a building.
Related words
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