Spinoff definition is the distribution by a business to its stockholders of particular assets and especially of stock of another company. Completion of the spin off is subject to certain customary conditions, including the receipt of a ruling from the us internal revenue service as to the taxfree nature of the spin off which the company has received, effectiveness of appropriate filings with the us securities and exchange commission, receipt of legal opinions and final approval. These descriptions will be helpful in drafting the agreements implementing the spinoff and in ensuring that. See spin off in the oxford advanced american dictionary.
Information about spin off in the dictionary, synonyms and antonyms. Many diversified companies are electing to spin off parts of their business finding they can create significant value for shareholders. After the acquisition, the company was required to spin off about a third of its assets. Spinning the news, white house press from franklin d. Spinoff meaning in the cambridge english dictionary.
Other notable recent spin offs include penn national gamings spin off of its real estate assets into the firstever casino reit, rayoniers spin off of its performance fibers division, energizer holdings planned spin off of its personal care business, gannetts planned spin off of its publishing business, duponts planned spin off. Proper usage and audio pronunciation plus ipa phonetic transcription of the word spin off. Derive or produce from something else, especially a small part from a larger whole. Two of the more familiar ones were expedias spinoff of tripadvisor and ebays spinoff of paypal. He described the spin off of the chip business as absolutely the right thing to do. Spinoff are a regular occurrence in the business world as companies restructure their organisations to appease shareholders.
Spinoffs and the allimportant business purpose continued from page 1 a textbook example of this available alternatives principle involves a company that is engaged in the toy and candy business. This is the british english definition of spin off. Dec 09, 2015 yahoo looks to spin off its core business and keep alibaba. Perhaps sensing that the internet boom called for a shift in business models, moog and his colleagues opted for the spin off. Spin offs present only a limited ability to monetize spincovalue. Business model innovations have reshaped entire industries and redistributed billions of dollars of value. Space research often provides a spin off for everyday technology. With nounverb tables for the different cases and tenses links to audio pronunciation and relevant forum discussions free vocabulary trainer. To distribute stock of a subsidiary to stockholders of the parent company.
Spinoff definition and meaning collins english dictionary. The complexity and associated level of effort in any carveout situation is influenced by factors such as. Spinoff a situation in which a company offers stock in one of its whollyowned subsidiaries or dependent divisions such that subsidiary or division becomes an independent company. The separate business entities created in a spin off sometimes differ in many ways from the consolidated company, and may no longer be suitable investments for some original shareholders. Spin off financial definition of spin off financial dictionary. The parent company may or may not maintain a portion of ownership in the newly spun off company. Subsequent to the spinoff, shareholders in the original joint firm, including both the incumbent and passive investors, control the same fraction of equity in each. For example, before the spin off, the subsidiary may have been subjected to extraordinary costs by virtue of its affiliation with a particular parent business. Spun off companies are often much smaller than their original parents, and are frequently characterized by higher. Spinoff noun definition and synonyms macmillan dictionary. Do you have a valid corporate business purpose for the spin off.
Overview for a detailed explanation of spin off transactions, including information on alternative separation transactions. You can complete the definition of spinoff effect given by the english definition dictionary with other english dictionaries. Benjamin bradlee, executive editor of the washington post, quoted by woody klein in all the presidents spokesmen. Shareholders of the parent company receive stock in the new company based on an evaluation established for the new entity. Wikipedia, lexilogos, oxford, cambridge, chambers harrap, wordreference, collins lexibase dictionaries, merriam webster. Learn the translation for spin off in leo s english. Spin off article about spin off by the free dictionary.
Please help improve this article by adding citations to reliable sources. Finally, it presents the main concept of an online business dictionary under. Yahoo looks to spin off its core business and keep alibaba. A spinoff involves the separation of a companys businesses through the creation of one or more separate, publicly traded companies. Business purpose of the spin off although utilized for many decades, spin offs have become an increasingly popular business and financial tool in recent years. For example, the corporation decided to spin off the automobile parts division, or her column was spun off from her book on this subject. Not only would we have lost the immediate business but the longterm spinoff as well. Old english spinnan draw out and twist fibers into thread, from protogermanic spenwanan compare old norse, old frisian. These need to reflect the balance sheet and performance of the spin off business on a standalone basis.
A hybrid type of an academic spin off is a new firm set up by a team of founders that includes both university researchers and founders from outside the university sector. Dictionary ofbusiness fourth edition specialist dictionaries. Specialization is therefore an important basis for mass production. May 07, 2015 a spinoff involves the separation of a companys businesses through the creation of one or more separate, publicly traded companies.
Spin out and startup are wellknown and frequentlyused phrases, both in the world of commerce and also more widely in the media. A divestiture by a corporation of a division or subsidiary by issuing to stockholders shares in a new company set up to continue the. Kimberlyclark said that the form 10 registration statement for its previously announced plan to spin off its health care business has been filed with. However, neither spin out nor startup has an exact definition and the two phrases are sometime used. How do spinoffs impact investors in the both the parent.
Spin off definition is the distribution by a business to its stockholders of particular assets and especially of stock of another company. In a spinoff, a company sets up one of its existing subsidiaries or divisions as a separate company. A divestiture by a corporation of a division or subsidiary by issuing to stockholders shares in a new company set up to continue the operations of the division or subsidiary. Heres a list of opposite words from our thesaurus that you can use instead. Despite the growth that they can create, established corporations rarely. Corporate spin offs have become a popular way for companies to release shareholder value and achieve other business purposes. Spinoff significado, definicao em dicionario ingles. A corporate spinoff, also known as a spinout, or starburst, is a type of corporate action where a company splits off a section as a separate business. The latter may enrich the knowledge base of an academic spin off through their commercial experience. The company put out a report on commercial spin offs from its research. Not only would we have lost the immediate business but the longterm spin off as well.
Chemmanur and yan 2004 argue that such improvements arise from the disciplining effects of spinoffs on firm management. Spinoffs have been popular because many investors, boards and managers believe that certain businesses may command higher valuations if owned and managed separately, rather than as part of the same enterprise. Its spun off as an independent business in its own right, and shareholders in the original company will usually be given stock in the new entity. Look up spin off or spin off in wiktionary, the free dictionary. Their work is a spinoff from research to give paralysed people the ability to move and feel artificial limbs.
A spinoff is an unexpected but useful or valuable result of an activity that was designed to achieve something else. A spin off involves the pro rata distribution of a controlled corporations stock to the distributing corporations shareholders without their surrendering any distributing corporation stock. Fayez nureldineafpgetty images spin offs often result in a higher aggregate value for the constituent pieces. Spinoff financial definition of spinoff financial dictionary. The individuals who are the leaders in an organization, regarded collectively. The activity of leading a group of people or an organization or. The spin off must be motivated in whole or substantial part by a real and substantial nonfederal tax purpose germane to the business of remainco, spinco, or their respective affiliates i. From cambridge english corpus thus, an improved production system also had environmental spin off by increasing carbon sequestration and thereby contributing to mitigating global warming. The company studied several scenarios, including a taxable outright sale of various businesses, but found the spinoff to be easily the most value creating, because of the tax advantages. Key issues when considering a spin off in his regular column, frank aquila drafts a sample memo to a board identifying the principal legal issues to consider when determining whether to undertake a proposed spin off. Spin off definition and meaning collins english dictionary. The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiarys capital stock, which is subsequently transferred to the parent corporations shareholders. A spin off is something that was created as a byproduct of something else. Private spin offs are expected to take the total value of the scheme well past the.
A corporate spin off, also known as a spin out, or starburst, is a type of corporate action where a company splits. The origin of spinoffs a typology of corporate and academic. Italian industrial group fiat spa will spin off its auto business under a new strategic plan, a source said on tuesday, and shares surged almost 9 percent on the possibility of a demerger. The toy business is quite risky and the corporation wishes to insulate the latter from the risks and vicissitudes of the candy business. A roadmap to accounting and financial reporting for carve. A corporate spinoff, also known as a spin out, or starburst, is a type of corporate action where a company splits off a section as a separate business. Although spinoffs may in certain circumstances have the potential to increase costs through loss of synergies, in certain scenarios costs may be reduced. The expression transfers the throwing off by centrifugal force, as in spinning, to other enterprises. Although spin offs may in certain circumstances have the potential to increase costs through loss of synergies, in certain scenarios costs may be reduced. Corporate spin off, a type of corporate transaction forming a new company or entity. To spin off something such as a company means to create a new company that is separate from the original organization. Addressing the key issues in the four phases detailed here will help ensure a smooth transition and a successful execution.
Change your default dictionary to american english. This disambiguation page lists articles associated. Meaning, pronunciation, translations and examples log in dictionary. Definition and synonyms of spin off from the online english dictionary from macmillan education. Spin off definition of spin off by the free dictionary. A theory of corporate spinoffs request pdf researchgate. For example, directors of union pacific corporation voted to spin off the firms natural resource operations by distributing to union pacific stockholders shares of union pacific resources. Something, such as a product, that is derived from something larger and.
Feb 28, 2020 an incidental benefit or unexpected pay off. I would define spin as the shaping of events to make you look better than anybody else. Abrasion the wearing off to which coins, especially. A spinoff is when a company takes a portion of its operations and breaks it off into a separate entity. Spinoff definition is the distribution by a business to its stockholders of. Taxfree spinoff refers to a corporate action in which a publicly traded company spins off one of its business units as an entirely new company. A spin off is the creation of a new company from part of an existing one. In a spinoff, shares of the new company are distributed taxfree to. A spinoff is the creation of an independent company through the sale or distribution of new shares of an existing business or division of a parent company. A spin out is a type of corporate realignment involving the separation of a division to form a new independent corporation. Spin off a spin off occurs when a company decides to separate from one of its divisions or subsidiaries. A company may conduct a spinoff for any number of reasons. How do spinoffs impact investors in the both the parent and. In media, a spinoff or spinoff is a radio program, television program, video game, film, or any narrative work, derived from already existing works that focus on more details and different aspects from the original work e.
Spinoff legal definition of spinoff legal dictionary. These shares are distributed to the current stockholders shareholders in proportion to their current shareholdings, and may also be sold to the public, or 2 a leveraged. Synonyms for spinoff at with free online thesaurus, antonyms, and definitions. Mar 24, 2015 how do spinoffs impact investors in parent and subsidiary companies. In addition, they continue to hold stock in the parent company.
Spin off a public entity plans to distribute a portion of its assets that constitute a business by spinning the business off to its shareholders as a separate public company. Spin offs are divisions of companies or organizations that then become independent businesses with assets, employees. In a spin off, a company sets up one of its existing subsidiaries or divisions as a separate company. For example, the corporation decided to spin off the. Learn the translation for spinoff in leo s english. Pdf this article is the written version of the enrique alcaraz annual memorial. The transportation operation will be spun off into a separate company. He described the spinoff of the chip business as absolutely the right thing to do. This article needs additional citations for verification. A fictional work where the protagonist was introduced in a preceding work or at least shares the same setting, often in a different aspect. Spin off definition, a process of reorganizing a corporate structure whereby the capital stock of a division or subsidiary of a corporation or of a newly affiliated company is transferred to the stockholders of the parent corporation without an exchange of any part of the stock of the latter. Spinoff definition of spinoff by the free dictionary.
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