Skip to main content

View Diary: Newscorp to be broken up? (12 comments)

Comment Preferences

  •  Could be. It's pretty common.... (1+ / 0-)
    Recommended by:

    ...if a company expects to lose a lot of money in litigation, they will often spin off unrelated subsidiaries to protect them from the lawyers.    That is what happened to Nabisco:  purchased in a hostile takeover by tobacco company RJ Reynolds (read "Barbarians at the Gate" for an account of this), then it was sold to Altria Holdings (controlled by rival tobacco giant Philip Morris), merged with Kraft (also owned by Altria), with the Kraft/Nabisco divisions being spun off in the early 2000s to protect their assets from the rash of tobacco lawsuits brought by the states.  

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site