divestiture

noun

di·​ves·​ti·​ture dī-ˈve-stə-ˌchu̇r 

-chər,

də-,

 chiefly Southern  -t(y)u̇(ə)r

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 on the Web

This year, even as a bipartisan group of lawmakers sought legislation to force a divestiture, Trump indicated his opposition to such a move. —Ted Johnson, Deadline, 27 Dec. 2024

The President may, however, grant a 90-day extension based upon progress towards a qualified divestiture. —Alden Abbott, Forbes, 19 Dec. 2024

Second, Jana is recommending that management explore a divestiture of the Ventures business, which has been deflating Markel’s valuation. —Kenneth Squire, CNBC, 14 Dec. 2024

Federal officials began investigating the app in 2019, and then-President Trump sought to force a divestiture via executive order in 2020. —Julia Shapero, The Hill, 12 Dec. 2024

Word History

Etymology

divest + -iture (as in investiture)

First Known Use

1601, in the meaning defined at sense 1

Legal Definition

divestiture

noun

di·​ves·​ti·​ture dī-ˈves-ti-ˌchu̇r, də-, -chər 

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