Deal Break-Up Fees and Joint Ventures: Comcast's California Appeal Presents Interesting Issues to Watch

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

Comcast Cablevision is challenging a California assessment based on the state's treatment of a “break-up fee” by a would-be acquisition as business income and its contention that the taxpayer's 57 percent interest in a home shopping network renders it unitary with the TV retailer. In this article, Kyle O. Sollie and Brian W. Toman, of Reed Smith LLP, review Comcast's arguments and the lessons other taxpayers might draw from the case.

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