Buterin: Splitting Networks or Companies Can Generate More Value Than Mergers
Vitalik Buterin · a16z Podcast | Ethereum, App Coins, and Beyond · Jan 2, 2019 · at 30:09
Vitalik Buterin offers a theoretical framework comparing blockchain forks to corporate spin-offs and mergers.
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“There are times when a split actually can increase total value. Outside of blockchain lands, one of the examples of this is that there's been some fairly decent amount of research, like you, if you read some of the behavioral economists, so condiment and so forth, they'll talk about this a bit, which is that mergers very often end up reducing the value of the companies that go into them. So look, there are times when You know, coming together is a sort of negative value event, and there's times when splitting up is a positive value event.”
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