Companies Divesting Assets After Poor M&A Decisions

Reported 2 days ago

Recent divestments by companies like Alibaba and BlackBerry highlight a trend where firms that made massive acquisitions during better economic times are now selling these assets for significantly lower prices. For instance, Alibaba is selling Intime for $1 billion, a fraction of its original purchase price, reflecting a broader market shift where previously overestimated valuations are being corrected. Analysts suggest that companies are prioritizing operational focus and honesty over past investment fantasies, leading to a renewed M&A market that may provide opportunities for buyers.

Source: YAHOO

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