Core Insights - Sandisk's significant post-spinoff rally highlights the potential for corporate breakups to enhance shareholder value [1] Group 1 - The recent performance of Sandisk post-spinoff has attracted attention to other companies considering similar breakups [1] - Corporate breakups are increasingly viewed as a strategy to unlock value for shareholders [1] - The trend of corporate breakups is gaining momentum, with a growing list of companies exploring this option [1]

Spin-off Performance - Spin-offs and breakups of S&P 500 companies occur frequently, with an average of 6 to 12 events annually [1] - Historically, these spin-offs tend to perform at an average level, eventually aligning with S&P 500 returns [1] - Indices that invest in spun-out entities often perform in line with or underperform the S&P 500 [2] Value Creation - Spin-offs generally do not create significant value [2][3] - Value creation is possible when the spin-off enables distinct activities, attracts different talent, or appeals to new investors compared to the original conglomerate [3] - Splitting a business can add value from a valuation, growth, or opportunity perspective in certain outlier cases [2]