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I’m very curious about this idea, is there any good resource you can recommend on this? How does splitting companies help? I don’t understand the value or the
by mikhailt 8y ago
I’m very curious about this idea, is there any good resource you can recommend on this?
How does splitting companies help? I don’t understand the value or the point of this, giving the history of Ma bell and they ended up being multiple larger bells in the long run.
Is the split intended to require regulation reviews when someone want to merge or purchase companies later?
- ethbro 8y agoAny split would be self-enforced. The ban on acquisitions would be the impetus to stay under the market cap. The article specifically notes that the Bell split was a bad model, as it just created multiple local monopolies. As a shareholder, I don't particularly lose as now I own stock in Google Search + Google Maps + Android (or whatever combo). Or corporations decide they want to stay big... but can no longer defensively acquire prospective competitors. Which seems to cleanly solve the problem of "No one aspires to be the next Apple / Google / Facebook, they simply want to be bought by them." It would depress valuations (as there wouldn't be a reliable acqu-exit), but that might not be such a bad thing either.