ELI5 Hostile Takeovers - how does a poison pill stop one?

In business, what is a hostile takeover? How does it work? How can a board of directors prevent a hostile takeover? What is a poison pill? Can a board choose not to use a poison pill once it has been set up? What do Microsoft, Netflix and Papa Johns have in common? ... we explain like I'm five Thank you to the r/explainlikeimfive community and in particular the following users whose questions and comments formed the basis of this discussion: vonshavingcream, georgeoscarb, oohcharlie and phage0070 To the ELI5 community that has supported us so far, thanks for all your feedback and comments. Send us an e-mail: [email protected]