Most of them were losing money


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Posted by mh on July 26, 2025 at 10:52:36

In Reply to: There is one huge difference posted by andyH on July 26, 2025 at 10:37:20

Somehow the market decided that the faster a company was loing money, the more valuable the company was.

Investors seem to have lost the ability to value a company. Here was one crazy example. 3Com had a Palm subsidiary, which sold the Palm Pilot. (Remember that?)

They decided to spin Palm off as a separate company. Immediately, the spin-off was worth more than the original company had been before the spin-off.

The "wisdom of the market" decided that a part of the company was worth more than the whole company. Eventually HP bought 3Com for $2.7 billion.




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