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A company can create an independent company from an existing part of the company by selling or distributing new shares in the so-called spin-off.


A situation in which a company offers stock in one of its wholly-owned subsidiaries or dependent divisions such that subsidiary or division becomes an independent company. The parent company may or may not maintain a portion of ownership in the newly spun-off company. A company may conduct a spin-off for any number of reasons. For example, it may wish to divest itself of one industry so it can expand into another. It may also simply wish to profit from the sale of the subsidiary. A spin off should not be confused with a split off.


In a spin-off, a company sets up one of its existing subsidiaries or divisions as a separate company.

Shareholders of the parent company receive stock in the new company based on an evaluation established for the new entity. In addition, they continue to hold stock in the parent company.

The motives for spin-offs vary. A company may want to refocus its core businesses, shedding those that it sees as unrelated. Or it may want to set up a company to capitalize on investor interest.

In other cases, a corporation may face regulatory hurdles in expanding its business and spin off a unit to be in compliance. Sometimes, a group of employees will assume control of the new entity through a buyout, an employee stock ownership plan (ESOP), or as the result of negotiation.

References in periodicals archive ?
Moreover, there are offshoots to these centers focusing on writing dictionaries and encyclopedias and on research into the history of Andalusia and on seeking to obtain chairs at major world universities to foster the teaching of the Arabic language and Islamic history, said the statement.
They are small offshoots, but you can see where they have been literally sawed off somehow.
To understand what's happening inside the Muslim Brotherhood, we've got to look at three aspects: The group's conditions inside Egypt, the pan-Arab strategies of its offshoots in the Arab world, and the situation of Arab politics in general," he wrote in the newspaper.
One of the most violent offshoots of HuT (Hizb ut-Tahrir in Arabic meaning the Party for Liberation) is the Islamic Movement of Uzbekistan (IMU), a group which has been fighting beside the Taliban on the AfPak front.
The pioneering ``Sesame Street Live,'' has now spawned offshoots.
The photographic offshoots of this conceptual theater, often elaborated with watercolor or oil paint, led after 1980 to a witty and wide-ranging engagement with traditional fine-art and craft media, particularly ceramics.
His book does not deal with the offshoots of bebop, such as cool jazz, hard bop, modal jazz, free jazz and fusion.
The British Helsinki Human Rights Group predicted that UK support for Kosovan refugees would also open it up to offshoots of [KLA-linked] criminal gangs and, within two years, that prediction had shown itself to be true," commented The Herald of London on November 4th.
The scientists note that the central rib gives out offshoots, just as a modern feather's shaft does, and the base looks like a feather's end, or calamus.
The Church of Jesus Christ of Latter-day Saints (Mormons) bans polygamy, but a number of small fundamentalist offshoots still follow the traditional church practice.
com domain and its various offshoots, including Web Host List and Ultimate ISP List.