It is a perfectly valid question. Donnybrook got over 2 million dollars for the purchase of the land.  If Donnycreek hit nothing then Donnybrook would have gained 2 million from dry land. There is risk reward in buying/selling assets.  Donnycreek hit big on the land, it sucks but business is inherently risky. Donnybrook needed cash and spun off land rather than diluting shareholders.  If you were so confident in that land, you should have sold some of your donnybrook and purchased some donnycreek.