In a recent article, Jim Osman discusses the trend of companies splitting up to reveal hidden value. The market is now favoring clarity over complexity, with investors losing interest in vague structures. Breakups like those seen in GE and WDC/SNDK have led to stronger valuations for individual units. The shift is driven by higher rates making inefficient structures costly, passive investors influencing governance, and activists pushing for simplification. Companies with mismatched parts may be next in line for restructuring to unlock value and drive accountability. The market is leaning towards rewarding companies that choose separation over scale.

Read more at Barchart: Investors Who Miss It Will Miss the Cycle