For more than two decades, innovations in technology and shifts in consumer habits have been disrupting the business models of media and entertainment companies, and companies are still shedding assets to respond to the changes. Among those shrinking to grow are Thomson Reuters, Tribune Media and Tegna. In the case of Tribune, shedding non-core assets may have helped position it for the company’s announced acquisition by Sinclair Broadcast Group Inc. (Nasdaq: SBGI). More media divestments are expected in the months ahead.
Advancements in technology are influencing divestment plans from declining and non-core business operations. In October 2016, Thomson Reuters (NYSE: TRI) sold its intellectual property and science business to Onex Corp. and Baring Private Equity Asia for $3.55 billion in cash. The news and wire service provider plans to use nearly $1 billion of the company’s net proceeds to buy back shares, pay down debt and reinvest in the company.