My impression is that, while corporate spinoffs are common, mergers are also common, and it seems fairly normal for investors to believe that corporations substantially larger than EA are more valuable as a single entity than as independent pieces, giving some evidence for superlinear returns.
But my guess is that this is extremely contingent on specific facts about how the corporation is structured, and it’s unclear to me whether EA has this kind of structure. I too would be interested in research on when you can expect increasing versus decreasing marginal returns.
My impression is that, while corporate spinoffs are common, mergers are also common, and it seems fairly normal for investors to believe that corporations substantially larger than EA are more valuable as a single entity than as independent pieces, giving some evidence for superlinear returns.
But my guess is that this is extremely contingent on specific facts about how the corporation is structured, and it’s unclear to me whether EA has this kind of structure. I too would be interested in research on when you can expect increasing versus decreasing marginal returns.