ShmoopTube

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Finance a la shmoop... what is a breakup fee? Isn't this what Taylor Swift wanted [Taylor Swift on the red carpet]

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to charge the Biebs or was that the weekend and what were mr. and mrs.

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weekend thinking when they named him The anyway..wait is this supposed to

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be about Selena and whatever maybe not well in corporate suitorship there's

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the same kind of you know tit for tat that is cantaloupe wants to acquire [Cantaloupe and a grape appear]

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grape for a hundred million bucks but cantaloupe is worried that grape will

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want to sew her seeds with you know other suitors there's the watermelon

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wuzzle the pumpkin press and the squash squash well cantaloupe feels like it's [Cantaloupe with $100m]

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paying a full price in the hundred million dollars it has offered but it's

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worried about idiots meaning everyone who doesn't agree with it or isn't

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aligned with cantaloupe yeah they're by definition an idiot according to [Man holding out a cantaloupe]

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cantaloupe well that is a financially irrational other suitors who might want

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to pay a hundred five million or a hundred ten million or a hundred fifteen

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million dollars so as part of the term sheet that gives grape thirty days to[Term sheet appears]

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fully sign or commit and be done well, grape has to pay cantaloupe a breakup

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fee if grape decides to go with someone else who wants to buy her that breakup

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fee is a fee for breaking up the deal between cantaloupe and grape and it

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might be something like 10 percent of the deal and this is really important

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because then if pineapple wants to buy grape [Pineapple appears with cantaloupe and a grape]

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well pineapple will not only have to pay meaningfully more than the hundred

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million dollars of cantaloupe but it'll have to pay grape the breakup fee as

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well making the total cost of the deal the pineapple well you know pretty

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prickly...

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