What is Unbundling?

Unbundling is a process whereby a relatively large company typically as well a multinational, with several different lines of business, retains a relatively small portion of its core businesses and sells off the remaining assetsincluding subsidiaries dedicated to the products and/or services of the non-core business. Unbundling can be done for a variety of reasons, but is typically done with the goal of creating a better performing company with corollary enhanced value for shareholders.