breakup


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Breakup

A situation in which two or more divisions of a company split into two or more independent companies. A breakup can occur as the result of anti-trust action by a government or if the company simply believes the divisions will be more profitable separately. A breakup should not be confused with a break. See also: Spin-off.

breakup

The division of a company into separate parts. The most famous breakup to date was the 1984 division of AT&T (formerly, American Telephone & Telegraph Company). This breakup was intended to increase competition in the communications industry.
Case Study In early 1996, Dun & Bradstreet management announced the firm would be divided into three publicly traded companies. Dun & Bradstreet would survive as a smaller, leaner firm while A.C. Nielsen, the media-ratings company, and Cognizant, a marketing information firm, would become separate corporations. At the time of the announcement, all three firms were part of the same parent company. In announcing the breakup, Dun & Bradstreet's chief executive officer said the decision was driven by management's desire to improve shareholder value. That statement implied management believed the three companies would be more valuable as separately owned and managed enterprises than as components of a single company.
References in periodicals archive ?
3 in 4 Americans who would communicate a breakup to their soon-to-be ex would do so face-to-face, with 28% communicating a breakup with a phone call.
The researchers discovered this by accessing records dating back to 1958 of the river's water levels, snow depths, air temperatures and times of ice breakup.
Based on the large R/S coping literature, a university student who identifies as Christian and who interprets a non-marital romantic breakup as a sacred loss and/or desecration may respond in a variety of ways, including questioning God's power or love, feeling punished by God, interpreting the breakup as a work of the devil, or feeling dissatisfied with other congregation members (Pargament et al.
The amount of time since the breakup seems to be inversely related to the amount of breakup distress, such that a shorter period of time since the breakup is related to greater distress (Knox et al.
For this reason, business owners facing a business breakup are often best advised to seek out assistance from a professional and a business valuation firm to assist the owners.
Besides Standard Oil, the case most touted by advocates of the Microsoft prosecution is the 1982 breakup of AT&T, which was overseen by federal judge Harold Greene.
Earlier in the day, the Tax Commission, an advisory panel to the prime minister, approved a package of proposals to revamp the corporate tax regime to facilitate breakups and mergers of companies through tax cuts or deferment of tax collection with an eye toward enhancing their competitiveness.
Microsoft under the potential sword of breakup imposed by Judge Jackson's decision is working aggressively to refocus its business on the Internet where it does not have the same insulation or dominant position.
In 1984, a federal judge ordered the breakup of AT&T into seven "Baby Bells.
And today, almost ninety years later, we are witnessing the reunion of the two largest companies created by the breakup of Standard Oil: Exxon (formerly Standard Oil Company of New Jersey) and Mobil (formerly Standard Oil Company of New York).
Share Breakup Tales, Dedicate Best Breakup Songs and Make Exes Jealous with Your Own Personal "Paparazzi" and Model Entourage