Spinoff

What Does Spinoff Mean?
The creation of an independent company through the sale or distribution of new shares of an existing business/division of a parent company. A spinoff is a type of divestiture.

Investopedia explains Spinoff
Businesses wishing to 'streamline' their operations often sell less productive, or unrelated subsidiary businesses as spinoffs. The spun-off companies are expected to be worth more as independent entities than as parts of a larger business.

Related Terms

Breakup Value
Carve-Out (Equity Carve-Out)
Conglomerate
Conglomerate Discount
Corporate Action
Divestiture
Parent Company
Rights Offering (Issue)
Subsidiary
Sum-Of-Parts Valuation
More Related Terms

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