One of the pendulums in business strategy is whether companies should be smaller so they can be more nimble and pursue their own destines or larger so the can be more protected from market demands and can capitalize on "synergies" with other business units.
In practice, investors usually discount larger companies for efficiency reasons. You can see this with acquisition announcements where the acquirer usually goes down in price. The synergies often fail to pay off because there aren't actually many synergies between making microwaves and running a TV network, and the sprawling empire turns into mostly independent fiefdoms.
In practice, investors usually discount larger companies for efficiency reasons. You can see this with acquisition announcements where the acquirer usually goes down in price. The synergies often fail to pay off because there aren't actually many synergies between making microwaves and running a TV network, and the sprawling empire turns into mostly independent fiefdoms.