Monday, February 06, 2006

Here's another move by the Walt Disney Company. Although this move doesn't seem as monumental as the Pixar purchase, it is notable. Today Disney announced that it will be merging ABC Radio with Citadel Broadcasting and plans to spin it off by the end of 2006. CEO Robert Iger explains this was done in order to "maximize the value of our assets for our share holders, while focusing our capital and management resources toward our core businesses." Sounds as though Iger is reading directly out of textbook's description of downscoping (p. 220-221).

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