Completion or abandonment of mergers and acquisitions: Evidence from the newspaper industry, 1981-2000

Katrin Muehlfeld*, Padma Rao Sahib, Arjen Van Witteloostuijn

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

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.

Original languageEnglish
Pages (from-to)107-137
Number of pages31
JournalJournal of Media Economics
Volume20
Issue number2
DOIs
Publication statusPublished - 1 Jan 2007
Externally publishedYes

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