This Case is about COSTS
PUBLICATION DATE: June 24, 2011 PRODUCT #: CU16-HCB-ENG
Walt Disney's Sale of ABC Radio Structuring a Tax-Efficient Divestiture Case SolutionA recent MBA, Jonathan Day, is tasked with assessing tax efficient divestitures for his business. Through his view, this case offers a summary of taxable and tax free constructions for corporate divestitures. Pupils will then examine Disney’s sale of ABC Radio, its portfolio of radio stations, to Citadel Broadcasting Corporation by means of a taxfree construction called the reverse Morris Trust, as well as the tax advantages and financial ramifications of the ABC Radio deal for Disney, Disney’s stockholders, and Citadel.
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