[asmosoinio]

I also did not understand how that could work in most cases.

I agree with allanienhuis, that it can work well for products.

I was myself working on a mobile app (before they were really a thing) at Nokia. The app was for analyzing golf swings. There was a department working on sports related products. Someone decided to streamline the company (around 2002 or so I guess - nothing major back then), and this department was killed.

We were allowed to spin off the app and related IP to our own company, and were able to continue working on it. At the time I think it was a win-win for both sides.