Spin-Off Research In the News

Diamonds in the Rough

Posted by Emily Borderie on Sun, Jun 17, 2007 @ 10:06 AM
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Sometimes IT makes sense for a company to shed its most lucrative business. Two years ago First Data was a $10.5 billion (sales) company with three divisions, the gem being its $4 billion (sales) Western Union, which built the first transcontinental telegraph line in 1861, is a powerful brand with a leading 17% market share. This business had a fat 33% operating margin (in the sense of earnings before interest, taxes, depreciation and amortization), and its top line goosed by immigrants sending money back home to their families- was increasing at a 14% annual clip.

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