Lightening the Load: An Exploratory Analysis of Divestiture Strategies of Major Media Firms

Abstract

The Telecommunications Act of 1996 has encouraged media firms to restructure their operations, relative to new opportunities. The deregulatory law has led firms to engage in extensive mergers and acquisitions. Similarly, media firms have divested numerous operations. The goal of this exploratory research article is to ascertain the divestiture strategies—and divestiture determinants—of major media firms since the Telecommunications Act of 1996. Divestiture strategies and motivations were reviewed and applied to recent media divestiture activity.

Key Words:

• strategy
• divestment
• restructuring
• policy