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'The Break-Up Bull Market': Watchers React to Toshiba Split

"Toshiba, GE about to have lots of company," Kip Heritage of The Heritage Group wrote on Twitter.

Toshiba (TOSYY)'s move Friday to split itself into three separate companies was met with some snark but also the belief that many more will soon follow suit — particularly among similar moves from General Electric ( (GE) - Get General Electric Company (GE) Report) and Johnson & Johnson ( (JNJ) - Get Johnson & Johnson (JNJ) Report) in the same few days.

"Expect they'll soon start calling this 'the break-up bull market,'" Kip Heritage of The Heritage Group wrote on his Twitter. "Toshiba, GE about to have lots of company."

The 140-year-old Japanese electronics producer announced that it would become an infrastructure services company, an electronics and storage company and a flash memory company with the Toshiba name.

Twitter user @cheechoong speculated that the move is a way for companies that have peaked financially to "buy time" by splitting into different corporations. By close on Friday, TOSYY shares were up 1.43%.

Jim Osman of The Edge Group argued that the move has historically been common for companies at the top of the market to prevent a downfall. 

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A separate Twitter user named @endzChancellor commented on how the market is naturally progressing away from "megacorporations" and toward smaller companies.

One of the biggest names to comment on the spit was Federal Trade Commissioner Noah J. Phillips, who wrote that the market can also pressure companies away from monopolization.

"These are examples of how market pressures like the 'market for corporate control' can work not just to grow companies but also to break them up in ways that make sense for business and consumers," Phillips wrote on his account.

And finally, cryptocurrency YouTuber Russ Knopf argued that an overvalued market is creating conditions in which smaller companies bring more value to the market. 

Along with the more obvious Johnson & Johnson and General Electric, he brought forward examples of IBM's ( (IBM) - Get International Business Machines (IBM) Report) and United Technologies's ( (UTX) - Get United Technologies Corporation Report) 2020 splits.