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After Months of Trying to Sell Its 81 Percent Stake

question 6

Essay

After months of trying to sell its 81 percent stake in Blockbuster Inc., Viacom undertook a spin-off in mid 2004. Why would Viacom choose to spin-off rather than divest its Blockbuster unit? Explain your answer.


Definitions:

Whalebone

A strong, flexible material from the baleen plates of whales, historically used in corsets, whips, and other products.

Affects

Refers to the consequence or impact of one thing on another; can also refer to emotive expressions in psychology.

Clawed Toes

A condition where toes possess or resemble claws, often referring to a deformity or an animal's natural characteristic.

Down Covered Neck

A description typically relating to birds or articles of clothing where the neck region is covered with soft, fine feathers or down-like material.

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