Spinoff (redirected from Spinoffs)

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.

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spinoff

The distribution to stockholders of the stock of a subsidiary held by a parent company. Usually the distribution is not taxable to the stockholders until the new shares have been sold. Compare splitoff. See also partial spinoff.

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Spinoff

What Does Spinoff Mean?

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

Investopedia explains Spinoff

Businesses that want 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:
• Balance Sheet
• Common Stock
• Discount Rate
• Due Diligence
• Value Proposition