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In this scenario, an investor acquires 4% of Dropbox's shares at $20 each and decides to make a tender offer to gain a controlling position and replace management. Dropbox, opposing this takeover, offers to buy back the shares for $26 each, providing the investor with a $6 profit per share. This strategy, known as "green mail," involves the company paying a premium to the investor to abandon their takeover bid, thus allowing Dropbox to retain control without facing the proposed changes in management. The term encapsulates corporate tactics used to fend off unwanted acquisitions.