The brand Tandem Productions was abandoned in 1986 with the cancellation of Diff'rent Strokes, and Embassy ceased to exist as a single entity in late 1986, having been split into different components owned by different entities. The Embassy TV division became ELP Communications in 1988, but shows originally produced by Embassy were now under the Columbia Pictures Television banner from 1988 to 1996 and the Columbia TriStar Television banner from 1996 to 2002.
Lear's Act III Communications, founded in 1986 with Tom McGrath as president, produced several notable films, including Rob Reiner's next three films: The Sure Thing, Stand By Me, and The Princess Bride, as well as Fried Green Tomatoes.
Lear's Act III Communications was founded in 1986 and led initially by Tom McGrath, who met Lear while negotiating on behalf of Coca-Cola the acquisition of Lear's old company, and later by Hal Gaba, a former Embassy Pictures executive. This included: Act III Theatres, sold to KKR in 1997; Act III Broadcasting, sold to Abry Communications; and Act III Publishing, sold to PriMedia. Lear is also the owner of Concord Records, and in 2005 consummated a 50% interest in the film library and production assets of Village Roadshow Productions Pty Ltd.