I think the main counter example to this in the case of Intel is Global Foundries success after splitting from AMD. However GF had to find their own niche downmarket to the cutting edge nodes that AMD requires. So in the case of RR, it’d be like if the turbine segment gave up on SOTA aero engines and instead transitioned into electricity generation turbines (or some less sexy end market).
My personal bias is that in the long term, keeping the different divisions as one whole makes both sides less fragile in the long run.
The other problem I think you’re getting at that being on the cutting edge of a market that is extremely capital intensive is a tough sell to the banks & financiers. I feel like every industry outside of finance is increasingly squeezed out like humanity can survive on securities arbitrage alone.
My personal bias is that in the long term, keeping the different divisions as one whole makes both sides less fragile in the long run.
The other problem I think you’re getting at that being on the cutting edge of a market that is extremely capital intensive is a tough sell to the banks & financiers. I feel like every industry outside of finance is increasingly squeezed out like humanity can survive on securities arbitrage alone.