An exploratory study of recent trends in the diversification of Dutch publishing companies in the multimedia and information industries

This study investigates the investment strategies of companies in a traditional sector that faces important challenges for new technologies. This study focuses on the various forms of investment and divestment that are used by companies to achieve diversification. Using data from a small sample of leading Dutch publishing companies, a multinomial logit analysis is applied to model the investment preference of these firms. The data show that these leading companies in the industry diversify into new activities that are centered around the Internet, e-business, and other electronic products and services. These firms are found to prefer a gradual diversification thorough related activities.