[bradb3030]

Your description reminded me of a book: The Great Game of Business - Jack Stack

It describes employee-owned companies and frames the type of spinoff you described as a positive investment, mutually beneficial, to re-leverage debt and provide growth for leaders that are blocked.

Obviously I don't know the situation and the mindset of leadership, but I wouldn't ridicule what you suggested as stealing their IP. They're getting a % ownership in a company in hopes of it becoming a valuable asset -they'd be making a choice.