Publications

We study how innovative firms manage their innovation portfolios after filing for Chapter 11 reorganization using three decades of data. We find that they sell off core (i.e., technologically critical and valuable), rather than peripheral, patents in bankruptcy. The selling pattern is driven almost entirely by firms with greater use of secured debt, and the mechanism is secured creditors exercising their control rights on collateralized patents. Creditor-driven patent sales in bankruptcy have implications for technology diffusion--the sold patents diffuse more slowly under new ownership and are more likely to be purchased by patent trolls.

Synchrony, a prominent financial services company, was established in 2014 following its spin-off from General Electric (GE) where it had a long history as a significant financial arm. Synchrony became the largest issuer of private label credit cards in the United States. The company’s CEO, Margaret Keane, faced the task of harmonizing the firm’s deep legacy with innovative practices to attract and retain millennial talent in an era where traditional financial services are perceived as less appealing career options. Keane had to ensure these young professionals' insights drove the development of new products and services suited to millennial spending habits.

Furthermore, Synchrony faced heightened competition from fintech companies that have successfully captured millennial credit preferences with innovative and user-friendly products. Another significant challenge involves supporting retail partners as they navigate the evolving retail landscape marked by a shift towards omni-channel retailing, which blends online and physical store experiences. 

In 2016, Tribune Publishing responded to a takeover attempt by Gannett with a strategic rebranding, aiming to establish itself as a technology company instead of a traditional newspaper publisher. This rebranding involved renaming the company to tronc (Tribune Online Content), moving its shares from the New York Stock Exchange to NASDAQ, and announcing ambitious plans to use artificial intelligence to produce and manage content. The leadership team, composed mainly of individuals with backgrounds in healthcare technology and artificial intelligence rather than newspaper publishing, faced skepticism and ridicule from analysts and the media, who criticized the strategic pivot and expressed doubts about its viability.

Analysts confronted several challenges in valuing tronc. The company’s new strategy and rebranding efforts blurred the lines between a media company and a tech firm, complicating traditional valuation metrics. Furthermore, the lack of clarity regarding the funding for the digital transformation raised questions about the firm’s financial stability.