Seagram and MCA
Case #:
A07-97-0009
Fields:
Corporate strategy; general management; acquisition strategy
Abstract:
In 1995 Edgar Bronfman, President of Seagram Company, is considering a potential acquisition of MCA. MCA, the large Hollywood-based entertainment company, is currently owned by Matsushita Electric Industrial Company of Japan. Matsushita appears to be interested in selling all or part of MCA. To acquire MCA, Seagram may have to sell all or part of its stake in DuPont.
Teaching:
This case can be used in the Corporate Strategy section of a strategic management course. It provides insights into unrelated diversification, and can also be used to illustrate valuation issues and stock market reactions to corporate events.
Industry:
Entertainment
Setting:
United States 1995
Length:
18 pages
Source:
Library case
Published:
1997
Subject:
General Management
