Is a company worth more than the sum of its parts? A classic part of financialism is buying a company to break it up and sell the parts for a total sum more than what the company is valued at. This was the raider tactic in the 1970’s and 1980’s and a private equity play ever since.
Now it is being proposed for eBay by Elliot Management and Starboard Value LP.
How should the value of the company as a whole and its various parts be determined?