2 ms·
A problem with publicly traded companies is that now they are an investment. Owners want them to grow faster than the competition or else they switch -- so ther
by srean 8y ago
A problem with publicly traded companies is that now they are an investment. Owners want them to grow faster than the competition or else they switch -- so there is an inherent, let me call it 'artificial', pressure to grow. Lets take the example of Twitter once they have everyone on the world on Twitter and lets say they are turning in a stable profit. For stock owners thats no good. So Twitter would have to figure out to expand and grow some other way and in my mind, at that point it is no longer Twitter, its something else and I would rather that be a different company. You can see this effect in Microsoft. Under 'normal' circumstances Microsoft's parts would be all different companies because they are so different from each other. They have no reason being a single company other than the pressure to grow.
- nabla9 8y agoSometimes companies voluntarily split when there is not enough synergy. Stock owners get shares in both companies.