Spin-off

(redirected from Offshoots)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

Spin-off

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Spin-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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
Mentioned in ?
References in periodicals archive ?
The militant group Hamas is an offshoot in the Palestinian territories.
Muslim Brotherhood
An affable, relaxed de Mol was in Los Angeles last week to pitch another slew of projects from Endemol USA, the offshoot company led by David Goldberg,
De Mol formatting new shingle
Sumo is better known under its InternetList.com domain and its various offshoots, including Web Host List and Ultimate ISP List.
CNet Acquires Sumo for $28m
It's one of a series of offshoots, which include showing behind-the-scenes special EastEnders Revealed on BBC1 after it was a big hit on cable.
The diary: EastEnders stalker may return
Similarly, Freudian theory, psychoanalysis, and its multiple offshoots in contemporary culture that promote individual autonomy over the rights of others deserve close scrutiny for their pernicious influence.
The Perversion of Autonomy: The Proper Uses of Coercion and Constraints in a Liberal Society
These vehicles can no longer be offshoots of recreational vehicles which were, in turn, offshoots of motor homes.
Moving toward mid-size: new vehicles for new needs
The perception of the relativity of meaning has also led to a proliferation of critical theories, most notably deconstruction and its offshoots.
postmodern
Inexpensive offshoots at Macy's are Mexican-made margarita and wine glasses with a pale green bowl and dark green stem shaped like a cactus ($12).
Through colored glasses: a retro classic, today's barware is taking on new color; opulent jewel tones are the fashion when stocking your bar or china closet
Along the way the company has developed some product offshoots such as their text-to-speech software.
Software developer builds on artificial intelligence
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.
Luigi Ontani
IRISH banks should sell their UK and US offshoots because they have not provided good enough returns, a top economist said yesterday.
SUZY in the CITY - IN DUBLIN: BANKS URGED TO SELL

Financial browser ?
Full browser ?