Quoted from LTG:They would have had a bigger shock if the division "losing" money was sold and then went on to make more money elsewhere.
Can't let that happen.
LTG : )™
I would guess that it is pretty common for when a division is sold off for it to make money. Large companies in several different markets are valued by investors for less than the sum of their parts. In other words, investors tend to value smaller companies with a singular focus more than that same department under a large umbrella company. What happened doesn't make sense but spin offs are not always about a company trying to dump a troubled division and can be about increasing company value by reducing scope.