The incentives become perverse once relatively unrelated businesses are combined. History also shows conglomerates don’t out perform the stand alone companies a

The incentives become perverse once relatively unrelated businesses are combined. History also shows conglomerates don’t out perform the stand alone companies and it hurts competition and innovation. I think there’s a certain point where executives run out of ideas but have to be doing something. Then you have investment bankers and advisors pushing these ideas and copycatting each other for that sweet, sweet commission payday. And it’s not so much that these are great ideas, it’s can they sound okay enough to get that payday before everyone realizes it was all a stupid waste of time five years later. That is, after the acquired company gets its souls sucked out, the talent leaves, and the acquirer discards the husk at a discount.