Seagram and MCA
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.
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.