The Story of Paramount Communications v. QVC Network: Everything is Personal

Abstract:     
This chapter tells the story of the famous takeover decision in Paramount Communications v. QVC Network. The battle over Paramount lends support to the view that non-pecuniary motivations can sometimes explain battles for corporate control and management behavior better than pecuniary motivations. The selection process that brings executives to top management positions and their wide discretion to shape company strategy once in office leaves ample room for ambition, pride, envy, or animosity to filter into their decisions. It is hard to prove the existence of these drives, let alone measure them, but they are very real in the minds of market professionals. The three-way fight between Paramount, Viacom, and QVC is a textbook example of these motivations. This is consistent with claims that control is especially valuable to corporate decision-makers in the media sector, presumably because it comes with access to non-pecuniary benefits such as visibility, influence, and glamour.

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