I'm working through Introduction to Algorithms (CLRS), and it presents a recursive divide-and-conquer algorithm for multiplying any two $n \times n$ matrices (where $n$ is an integer power of $2$) as follows:
To compute the product $C = A \cdot B$, we partition each of $A, B, C$ into four $n/2 \ \times \ n/2$ matrices $$A = \begin{bmatrix}{} A_{11} \ A_{12} \\ A_{21}\ A_{22}\end{bmatrix}, \ B = \begin{bmatrix}{} B_{11} \ B_{12} \\ B_{21}\ B_{22}\end{bmatrix}, \ C = \begin{bmatrix}{} C_{11} \ C_{12} \\ C_{21}\ C_{22}\end{bmatrix}$$ so that $$\begin{bmatrix}{} C_{11} \ C_{12} \\ C_{21}\ C_{22}\end{bmatrix} = \begin{bmatrix}{} A_{11} \ A_{12} \\ A_{21}\ A_{22}\end{bmatrix} \cdot \begin{bmatrix}{} B_{11} \ B_{12} \\ B_{21}\ B_{22}\end{bmatrix} \ $$
Obviously, this works when $A_{ij}, B_{ij}, C_{ij}$ are just scalars (it's the definition of matrix multiplication), but why is this necessarily valid for any square matrix (if $A_{ij}, B_{ij}, C_{ij}$ are themselves matrices)? How do we know that we can just partition each of matrices $A$ and $B$ into four $n/2 \ \times \ n/2$ matrices, and that multiplying these matrices will give us the entries for the answer?
Is there a name for this theorem? The book doesn't mention it and assumes that it's a given, but I don't find it quite as obvious. Is there any intuition/ proof of why this works as intended?