The Sum Of The Parts is Greater than the Whole.

Spin offs often result in a higher aggregate value for the constituent pieces. A number of studies show that spin-offs historically have generated far better returns than the overall market. Spin-offs do well partly because when a business and its management are freed from a large corporate parent, pent-up entrepreneurial forces are unleashed.  A study by Lehman Brothers of 88 spin-offs between 2000 and 2005 found that they beat the S&P 500 by an average of 45% in their first two years as independent companies.