Crown Jewel Law and Legal Definition

Crown jewel is a particularly profitable or otherwise particularly valuable corporate unit or asset of a firm. It includes the most desirable entities within a diversified Corporation as measured by asset value, earning power, and business prospects. These entities typically are the main objective of an acquirer in takeover attempts and may be sold by a takeover target to make the rest of the Company less attractive. The term "crown jewels" refers to the main attraction of a target company. To ward off the raider, the defense may take the form of disposing of the crown jewels, as by declaring a large cash dividend, selling the prize unit, or making a defensive acquisition.