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Crown Jewel Defense
An anti-takeover strategy where the target company sells or spins off its most valuable assets (the "crown jewels") to make itself less attractive to a hostile bidder.
Implications
A defensive strategy used by a target company in a hostile takeover situation, where the company sells off or spins off its most valuable assets (the "crown jewels") to make itself less attractive to the acquirer.
Example
Example: A tech company facing a hostile takeover attempts a crown jewel defense by selling off its most profitable division, reducing the appeal of the remaining business to the aggressor.
Related Terms
Different from a poison pill, which dilutes the value of shares, a crown jewel defense involves disposing of key assets to discourage a takeover.
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