I think the spin off makes perfect sense as a TKO shareholder:
1. "TKO is relieved of the cost of funding MST's operations"
2. Future aquisitions by MST won't significantly dilute TKO shareholder value.
3. MST won't financially impede any aquisition of TKO by another company.
In short, it unclutters the balace sheet.
If your read Frank's following quote, TKO's direct ownership of MST hampered MST's growth either:
Frank Matarazzo, President and Founder of MSTI, said "Becoming a public company will allow MSTI to enjoy a much broader exposure to the investment community and will provide us with the access that we need to the capital markets for widening market share and growing our revenues and earnings." Mr. Matarazzo continued, "With the additional capital from this offering and the greater access to capital associated with being public, we are in a much better position to offer highly competitive services, utilizing the best technologies available within the satellite communications industry."