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

Related Links

Cashing In On Corporate Restructuring - Companies use M&As and spinoffs to boost profits - learn how you can do the same.
Female CEOs: What It Takes To Climb The Corporate Ladder - The road to the executive suite is paved with education, experience and knowledge for men and women alike.
Mergers and Acquisitions: Break Ups - Discover how a de-merger is an attractive option for companies.
Parents And Spinoffs: When To Buy And When To Sell - Spinoffs can create great investing opportunities, but there's a time to stick around and a time to jump ship.
Conglomerates: Cash Cows Or Corporate Chaos? - Huge companies may not be as infallible as previously assumed. Find out why bigger isn't always better.
What Are Corporate Actions? - Be a savvy investor - learn how corporate actions affect you as a shareholder.
Why is the 1982 AT&T breakup considered one of the most successful spinoffs in history? -
The Importance Of Segment Data - Key financials often fail to provide insight into large cap companies.
Exclusive: Learn the "House Odds" of Investing

Rate this Term: Your Rating: Overall Rating: Vote Now!