GE is to split into three separate companies. So is Toshiba. Johnson & Johnson? Two—at least that's a Johnson for each. The hope is that shareholders will be happy and the separate businesses, better able to focus.
But what are the impacts to commercial real estate? Potentially good for a while and not so good over a longer period, if history is any guide.
This concentrated burst of major corporate disintegration isn't unparalleled. There has been an ongoing pendulum swing between conglomeration and the benefits it supposedly offers of diversified revenue streams and better access to financing, and the potential disadvantages, such as lack of focus and fuzzy financial reporting.
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