TY - JOUR
T1 - Completion or abandonment of mergers and acquisitions
T2 - Evidence from the newspaper industry, 1981-2000
AU - Muehlfeld, Katrin
AU - Sahib, Padma Rao
AU - Van Witteloostuijn, Arjen
PY - 2007/1/1
Y1 - 2007/1/1
N2 - Regulatory and technological changes have resulted in a surge in merger and acquisition (M&A) activity in the newspaper industry since the 1980s. This study investigates the "success" of these activities focusing on a particular facet of acquisition performance. We study the completion likelihood of an announced transaction, using a sample of M&A announcements from the newspaper industry (1981-2000). Results show that although firm-level characteristics are relevant, transaction-specific and regulatory factors are even more important. Not surprisingly, the attitude of the transaction - whether hostile or friendly - is a key factor, as are the method of payment and the percentage of control sought by the acquirer. The latter in particular reaffirms the prevailing view on the importance of regulatory influences on media M&As.
AB - Regulatory and technological changes have resulted in a surge in merger and acquisition (M&A) activity in the newspaper industry since the 1980s. This study investigates the "success" of these activities focusing on a particular facet of acquisition performance. We study the completion likelihood of an announced transaction, using a sample of M&A announcements from the newspaper industry (1981-2000). Results show that although firm-level characteristics are relevant, transaction-specific and regulatory factors are even more important. Not surprisingly, the attitude of the transaction - whether hostile or friendly - is a key factor, as are the method of payment and the percentage of control sought by the acquirer. The latter in particular reaffirms the prevailing view on the importance of regulatory influences on media M&As.
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U2 - 10.1080/08997760701193746
DO - 10.1080/08997760701193746
M3 - Article
AN - SCOPUS:34547375213
SN - 0899-7764
VL - 20
SP - 107
EP - 137
JO - Journal of Media Economics
JF - Journal of Media Economics
IS - 2
ER -