The case where an employee, or a group of employees, leaves the parent company to establish a new entity that is legally and technically independent from the parent, but which is supported by the parent company, at least during the start-up phase.
A form of reorganization that results in either part or all of existing company operations being distributed to shareholders in the form a separate company, which, in many cases, becomes a publicly-held company. Spin-offs can be most effective in obtaining financing for new technologies, or for expansion.
a tax-free transaction in which a parent corporation transfers the business to be spun-off to a new subsidiary, and then pays a special dividend to its shareholders consisting of the shares of the new subsidiary
When a company has a spin-off, it creates an independent company from a current subsidiary and does so by distributing or selling shares of the new company to its current shareholders. Spin-offs are accounted for in the Marketocracy competition just as they would in real life.
A corporation's action to sever part of its operations and create a separate company. Shares in the new company are issued to the corporation's stockholders. Shares of the two companies then trade separately.
In a spin-off, a company sets up one of its existing subsidiaries or divisions as a separate company. The motives for spin-offs vary. In some cases, 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 company may face regulatory hurdles in expanding its business and spin off a unit to be in compliance.
When a company sells a portion or all of a division to the public in the form of an IPO they are doing a spin-off. The parent company would do a spin-off for several reasons. First, to raise capital. The parent may be highly leveraged. Second, to rationalize its operations by selling off a non-core business. In this type of spin-off the managers of the newly public company are (or should be) incentivized to perform well by holding stock in the new company. Finally, a parent may decide to spin-off a division in order to draw attention to the newly independent entity and perhaps to raise the stock price of the parent.
Form of a corporate reorganization that results in a subsidiary or division becoming an independent company. In a traditional spin-off, shares in the new entity are distributed to the parent corporation's shareholders of record on a pro-rata basis.
A spin-off is an independent society created from a previous industrial unit (industrial spin-off) or deriving from research activities (academic spin-off) with the objective to commercialise ideas arising from university research programmes.
Media spin-off is the process of deriving new radio or television programs from existing ones (see list of television spin-offs). Spin-offs work with varying degrees of success. Some become very popular and last for a number of seasons, others exceed the popularity of the forebearing show and others are poorly received and have considerably shorter life spans.