It is tough to keep two widely different businesses under one roof. One is a mature, public B2C, and the other is a dev tooling startup.

Spotify should spin off Backstage as a separate company, providing the initial IP and funding and being the first client.

Many companies, like Uber, created a lot of useful infra, though they failed to monetize it. They could take a cut in the Chronosphere (M3) and Temporal (Cadence).

Much better than laying off people, though origin companies would need to be smart, without being too greedy.

Though the model is unproven.