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 ?
hyperinflation, as in the break-ups of the Soviet Union and Yugoslavia.
Vera made it clear that both her break-ups with singer Otile Brown were very real, contrary to claims it was a publicity stunt.
I am not the best person with dealing with break-ups because I really do not know who to share the pain with and it really tears me apart," says Mwangi.
She said of her romantic problems: "Public break-ups are difficult.
But on being asked about their worst break-ups, respondents did not hold back - "My ex went stalker freak on me," one woman in her 20s said.
Kenneth Clarke said funding will be axed for a wide range of disputes, including those over relationship break-ups, school admissions and expulsions, as well as clinical negligence in a bid to save pounds 350 million over the next four years.
AN exhibition designed to ease the painful process of divorce has been postponed until the New Year - because organisers want to capitalise on more marriage break-ups over Christmas.
The Abba Years (9.00pm) The success of the Swedish supergroup, exploring the flamboyant outfits, hit records, successful spin-offs, marriages and break-ups..
What is contributing to family break-ups, according to The Children's Society?
"Mini soap operas are played out in inboxes across the country every day, from job offers to wedding proposals, big breaks to break-ups.
A top judge is calling for an end to fault-based divorces to help prevent bitter break-ups.
Other break-ups include Stefan Janoski who left Expedition, Javier Sarmiento who left Powell for The Firm, and Charlie Wilkins and Scott Pazelt who got the bootski from Maple.