Comment Re:I am an economics nub (Score 1) 76
Sounds reasonable. My employer, long before I hired on, did much the same thing.
They split off one part of the business as a separate company, since the one company's customers were customers of the other company. This meant that the customers of the spun-off company's competitors were at a disadvantage. Or were perceived to be.
Post-spinoff, Company S's customers wouldn't be locked in to using Company E. And customers of companies competing with Company S wouldn't feel like they were getting less attention than customers of Company S, if they chose to go with Company E.