BROWSE

Sale Of Crown Jewels

What is 'Sale Of Crown Jewels '

A takeover-defense tactic that involves the sale of the target company's prized and most coveted assets - the "crown jewels" - so as to reduce its attractiveness to the hostile bidder. The sale of a company's best assets will leave it as a mere shadow of its former self. This is a type of "kamikaze" defense tactic, which inflicts potentially irreversible damage on a company to prevent it from being acquired by a hostile party.

Explaining 'Sale Of Crown Jewels '

This tactic is sometimes used by conglomerates, which often attract hostile bidders because they can trade at a price below their break-up value due to the "conglomerate discount." A potential pitfall of this tactic is that a quick sale of prized assets may fetch a price far below what they are actually worth.


Further Reading


Agency costs and strategic considerations behind sell‐offs: the UK evidence
onlinelibrary.wiley.com [PDF]
… us to bring products to mar- ket other than through our own sales and marketing … rigorous and well organized the decision-making process, cultural barriers to crown-jewel licensing will … is, 'Protect and don't share' — especially don't share our technology crown jewels — and this …

Constructing a market, performing theory: The historical sociology of a financial derivatives exchangeConstructing a market, performing theory: The historical sociology of a financial derivatives exchange
www.journals.uchicago.edu [PDF]
… us to bring products to mar- ket other than through our own sales and marketing … rigorous and well organized the decision-making process, cultural barriers to crown-jewel licensing will … is, 'Protect and don't share' — especially don't share our technology crown jewels — and this …

Golden Parachutes, Crown Jewels and the Arrival of White Knight-Strategies to Defeat a Takeover-What Use in an Era of Rigorous Enforcement of Directors' DutiesGolden Parachutes, Crown Jewels and the Arrival of White Knight-Strategies to Defeat a Takeover-What Use in an Era of Rigorous Enforcement of Directors' Duties
heinonline.org [PDF]
… us to bring products to mar- ket other than through our own sales and marketing … rigorous and well organized the decision-making process, cultural barriers to crown-jewel licensing will … is, 'Protect and don't share' — especially don't share our technology crown jewels — and this …

Facets of French Heritage: Selling the Crown Jewels in the Early Third RepublicFacets of French Heritage: Selling the Crown Jewels in the Early Third Republic
www.journals.uchicago.edu [PDF]
… us to bring products to mar- ket other than through our own sales and marketing … rigorous and well organized the decision-making process, cultural barriers to crown-jewel licensing will … is, 'Protect and don't share' — especially don't share our technology crown jewels — and this …

6 No Longer the Crown Jewels of Sport?6 No Longer the Crown Jewels of Sport?
books.google.com [PDF]
… us to bring products to mar- ket other than through our own sales and marketing … rigorous and well organized the decision-making process, cultural barriers to crown-jewel licensing will … is, 'Protect and don't share' — especially don't share our technology crown jewels — and this …

Defending The Corporate Crown Jewels From The Dangers That Lurk Within: Effective Internal Network Security Focuses on BehaviorDefending The Corporate Crown Jewels From The Dangers That Lurk Within: Effective Internal Network Security Focuses on Behavior
www.tandfonline.com [PDF]
… us to bring products to mar- ket other than through our own sales and marketing … rigorous and well organized the decision-making process, cultural barriers to crown-jewel licensing will … is, 'Protect and don't share' — especially don't share our technology crown jewels — and this …

Tsarina's Necklace: Russian Jewels, Secret Agents, and the Tsarina's Necklace: Russian Jewels, Secret Agents, and the
www.tandfonline.com [PDF]
… us to bring products to mar- ket other than through our own sales and marketing … rigorous and well organized the decision-making process, cultural barriers to crown-jewel licensing will … is, 'Protect and don't share' — especially don't share our technology crown jewels — and this …

The Petroleum Sector in Latin America: Reforming the Crown Jewels-CERI Studies No. 88The Petroleum Sector in Latin America: Reforming the Crown Jewels-CERI Studies No. 88
inis.iaea.org [PDF]
… us to bring products to mar- ket other than through our own sales and marketing … rigorous and well organized the decision-making process, cultural barriers to crown-jewel licensing will … is, 'Protect and don't share' — especially don't share our technology crown jewels — and this …



Q&A About Sale Of Crown Jewels


Who might be interested in buying these assets?

A friendly third party might be interested in buying these assets.

What is Sale of Crown Jewels?

A takeover-defense tactic that involves the sale of the target company's prized and most coveted assets - the "crown jewels" - so as to reduce its attractiveness to the hostile bidder. The sale of a company's best assets will leave it as a mere shadow of its former self. This is a type of "kamikaze" defense tactic, which inflicts potentially irreversible damage on a company to prevent it from being acquired by a hostile party.

Who uses this strategy most often?

Conglomerates use this strategy most often because they are usually targeted by hostile bidders because they can trade at prices below their break-up value due to the conglomerate discount.

What does this tactic do?

It leaves the company in shambles.

Is this tactic used often?

Yes, conglomerates are often targeted by hostile bidders because they can trade at prices below their break-up value due to the conglomerate discount.

What is the strategy of a crown jewel defense?

The strategy of a crown jewel defense is to sell off assets that are most attractive.

What is another name for this tactic?

Kamikaze defense tactics.

How much damage can be done with this tactic?

It can inflict potentially irreversible damage on a company to prevent it from being acquired by a hostile party.

How does this strategy work?

This strategy works by making the company less attractive to an unfriendly bidder.

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