NEW YORK (CNNMoney) -- Merger Monday has recently become Splitting Monday. The latest companies to adopt the "divide and conquer" strategy are Netflix and Tyco International.
Netflix plans to split its DVDs-by-mail unit from its streaming-video business, rebranding the DVD service as Qwikster. The initial market reaction was positive as Netflix shares gained 4% in early-morning trading. But investors' enthusiasm quickly dimmed and by midday, Netflix ( ) stock was in the red, down more than 2% for the day.
Also on Monday, Tyco International (split into three publicly traded companies, each focusing on a separate segment:) announced that it will
- North America residential and small-business security functions;
- Flow-control products and services business;
- Commercial fire and security business.
Tyco CEO Ed Breen is hoping the sum of those parts will be worth more than the whole:
"Importantly, the new standalone companies will have greater flexibility to pursue their own focused strategies for growth -- both organic and through acquisitions -- than they would under Tyco's current corporate structure. This will allow all three companies to create significant value for shareholders."
Tyco shares advanced 2.5% on the news.
These are some of the popular themes on StockTwits this Monday:
|GM's $1.3 billion recall cost wipes out profit|
|What stumps Warren Buffett? Minimum wage|
|Ex-Wal-Mart CEO Duke retired with $140 million|
|Silicon Valley giants settle poaching case|
|So far, so good for Microsoft's Nadella|
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.24%||4.32%|
|15 yr fixed||3.25%||3.36%|
|30 yr refi||4.28%||4.31%|
|15 yr refi||3.30%||3.34%|
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