(redirected from Spin-offs)
Also found in: Dictionary, Thesaurus, Legal, Idioms.


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.


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


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.
References in periodicals archive ?
KATYA JONES & NEIL JONES TOURS DATES: 38 SPIN-OFFS: Somnium (three dates in June).
No prizes for guessing who won't be on the guest list JANETTE MANRARA TOURS DATES: 71 SPIN-OFFS: Remembering The Movies (42 dates ending May).
Rasmussen and Wright (2015) proposed several policies to foster and facilitate the creation of academic spin-offs. They considered that a university should be seen as one uniform entity in relation to spin-offs, considered its internal departments, offices, research groups, scientists and students.
Ortin-angel and Vendrell-Herrero (2010) found that typically university spin-offs attract more venture capital than other technological start-ups.
Existing research on corporate spin-offs suggests that spin-offs occur when the external environment is strong for spinning off (Hellmann, 2007).
These different perspectives on customer co-creation and supplier involvement for innovation are highly relevant but are not highlighted in relation to spin-offs in particular.
Today, for Middle East companies, spin-offs have a critical strategic advantage.
Consistent with Thompson and Apilado (2006) and supporting the pre-announced spin-off theory, the pre-announced spin-offs have greater returns than post-announced spin-offs.
Prior to authoring The Spin-Off Report, Ferazani spent the previous five years as an energy analyst for small-cap research firm Sidoti & Co., covering a wrange of stocks in the oilfield services and fuel distribution sectors.
Keywords: University Entrepreneurship; Knowledge Transfer; Academic Spin-offs; Technology Transfer Offices.
Spin-off transactions have the ability to create new opportunities for companies.
The base sample for this research includes all spin-offs announced by companies listed on the New York Stock Exchange (NYSE), American Stock Exchange (AMEX) or the NASDAQ between 1993 and 2003.