Definition of divestiture
1 : the act of divesting
2 : the compulsory transfer of title or disposal of interests (such as stock in a corporation) upon government order
Examples of divestiture in a Sentence
Divestitures are used to break up monopolies.
Before divestiture, the telephone company monopolized the state.
Recent Examples of divestiture from the Web
The move comes as HPE continues to sort out its businesses after a series of acquisitions, divestitures, and layoffs.
The helicopters were acquired by Arista through the Army's BEST divestiture program.
Investors are also divided over the impact of divestiture.
Divestiture would not save the federal government money in year-to-year costs, because the aqueduct receives no federal subsidies.
Roosevelt also could boost its revenue from additional real estate divestitures.
The combined company will become a TV broadcasting behemoth, owning and operating 233 television stations in 108 markets, pending any required divestitures by the FCC.
Still, a combined Tribune and Sinclair could surpass this cap and face some regulatory challenges which could result in divestitures, analysts said.
The FCC's reversal of a rule about how market reach of UHF channels is calculated could keep the market share of a combined Sinclair and Tribune Media low enough that a deal is workable with some divestitures, according to Bloomberg Intelligence.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'divestiture'. Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Origin and Etymology of divestiture
divest + -iture (as in investiture)
First Known Use: 1601See Words from the same year
Financial Definition of DIVESTITURE
What It Is
How It Works
Let's assume Company XYZ is the parent of a food company, a car company, and a clothing company. If for some reason Company XYZ wants out of the car business, it might divest the business by selling it to another company, exchanging it for another asset, or closing down the car company.
Why It Matters
Optimists often look at divestitures as ways to streamline (i.e., "get back to basics"), reduce debt, and enhance shareholder value. Pessimists may view them as concessions that the divested assets were not performing well.
DIVESTITURE Defined for English Language Learners
Definition of divestiture for English Language Learners
finance : the act of selling stock, property, etc., because of a government order
Legal Definition of divestiture
1 : the sale or transfer of title to a property (as an operating division) under court order (as in bankruptcy)
2 : the sale of an asset (as a business division) that is unprofitable, does not enhance a corporate restructuring, or is felt to be morally reprehensible
Seen and Heard
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