Sounds like diseconomies of scope is at work (WSJ Nov 2021).
FYI: A driver for conglomerates has disappeared. One reason that conglomerates were the rage in the 1960s is that the firm's stock served as a diversified portfolio of income streams from different sectors in the economy. A key lesson in finance is not to put all of you eggs in one basket. By buying shares in a conglomerate, an investor automatically had many baskets. Now, with lower transactions costs and ETFs and index funds, investors can easily and cheaply purchase a diversified portfolio AND can tailor to their individual preferences.
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