raider

noun raid·er \ ˈrā-dər \

|Updated on: 14 Jun 2018

Examples: raider in a Sentence

Definition of raider

: one that raids: such as

a : a fast lightly armed ship operating against merchant shipping

b : a soldier specially trained for close-range fighting

c : one that attempts a usually hostile takeover of a business corporation

corporate raiders

See raider defined for English-language learners

Examples of raider in a Sentence

The village needs protection from enemy raiders.
Raiders had emptied the tomb of treasure.
He made his fortune as a corporate raider.

Recent Examples of raider from the Web

So does the precise number of whaling ships destroyed by specific Confederate raiders.

— david r. baker, San Francisco Chronicle, "‘Energy: A Human History,’ by Richard Rhodes," 7 June 2018
The raider gangs are one of the best parts of the expansion.

— andrew webster, The Verge, "Bethesda teases Fallout 76 ahead of E3," 30 May 2018
The dark prince of corporate raiders shuns the usual clutch of outside attorneys, investment bankers, and PR firms that rival activists assemble for their assaults.

— shawn tully, Fortune, "Paper Jam! How Carl Icahn And a Billionaire Partner Blocked Xerox’s Merger with Fujifilm," 21 May 2018
Then, raiders like Carl Icahn would acquire a large stake in a takeover target, and use their leverage over the board to strip the company’s assets or break it up.

— william d. cohan, The Hive, "“The Nuclear Option”: With CBS Going to Court, Shari Redstone’s “Kabuki Theater” Falls Apart," 14 May 2018
The production team headed by Paula Wagner announced Wednesday that Andy Karl will step into the role of cutthroat corporate raider Edward, the part originated by Richard Gere in the 1990 movie, when the show moves to New York this summer.

— david rooney, The Hollywood Reporter, "Broadway Favorite Andy Karl Steps Into 'Pretty Woman'," 23 May 2018
The Richard Gere character is played by Steve Kazee, a corporate raider who's now way more of a dysfunctional mess than Vivian.

— chicago tribune, chicagotribune.com, "16 Chicago shows to see now," 13 Apr. 2018
In 2007, Carl Icahn, whose résumé as a corporate raider earned as much scorn as renown, began agitating for change at the company.

— damian garde, STAT, "As Biogen turns 40, biotech worries the glory days may be over," 2 May 2018
After trees were chopped down, from the Bronze Age on, tenth-century Viking raiders introduced sheep that began cropping the hillsides, and to this day keep them green and shorn.

— kieran dodds, Smithsonian, "Britain’s Lake District Was Immortalized by Beatrix Potter, But Is Its Future in Peril?," 20 Apr. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'raider.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of raider

1861

in the meaning defined above

See Words from the same year

NEW! Time Traveler

raider Synonyms

Financial Definition of RAIDER

raider

noun

What It Is

In the finance world, raider is short for corporate raider, which is a person or entity that purchases a company for the sole purpose of selling off its assets.

How It Works

Raiders are attracted to companies whose assets have book values that are higher than their market capitalizations. For example, let's say Company XYZ is a shoe company that owns several factories on prime pieces of real estate, has several patents in shoe technology, and owns a variety of other assets, all worth about $250 million today. However, Company XYZ's "New Feet" line has been a bust and the stock is only worth $1 a share, making the company worth, say, $100 million today. Accordingly, a raider might see that he or she can purchase the company for $100 million and the put the assets up for sale, making a cool $150,000,000 profit.

Why It Matters

Corporations that operate for a profit are legally obligated to act in the best interests of their owners -- the shareholders. What constitutes "the best interests of the shareholders" is a matter of debate, but when raiders become involved with a company, the company's managers must be more prepared to defend the decisions they make regarding how they have spent shareholder money. Many investors value raiders' ability to get an undervalued companies "back on track," as well as the fact that when they make money doing so, the rest of the shareholders benefit too.

One of the most famous raider stories involves the $25 billion takeover of RJR Nabisco by private equity firm Kohlberg Kravis Roberts in 1989. The deal was so famous (and so brazen) that it was immortalized by the book and movie Barbarians at the Gate. In those days, many companies used leveraged buyouts to purchase undervalued companies (that is, they would borrow all or most of the purchase price) only to turn around and sell off the assets.

Carl Icahn was a corporate "raider" in the 1980s and made millions buying and selling companies. Later, he became more known as an activist shareholder -- a person who buys a substantial portion of a company's shares and then pressures management to take actions that are sometimes uncomfortable but ultimately in the best interest of the shareholders.

Source: Investing Answers