I think the question has two parts. 1. Strategic 2. Financial Statements

The case clearly states that it would not make a dime from the acquisition but it does not state whether the venture is a loss making undertaking. Assuming there are better opportunities, the venture should be sold off and invest the proceeds in the those new opportunities. If there are no acquirers, then the company should liquidate it and unwind the operations. The reational behind getting rid of the operation is for the company to be able to focus on its core business and other opportunities.

Note that liquidation can be quite costly for the company. Such one time costs are charged off in the financial statements as restructuring costs. Large chunk of the restruring costs is the severance payments to the employees. If the compnay is sold off, then assets and equity/liabilities of the operaiton is taken off the book of the holding company. The gain or loss on the sale is recognized in the P/L accounts.