Corporate spin-off
A corporate spin-off, also known as a spin-out,[1] or starburst or hive-off,[2] is a type of corporate action where a company "splits off" a section as a separate business or creates a second incarnation, even if the first is still active.[3] It is distinct from a sell-off, where a company sells a section to another company or firm in exchange for cash or securities.
For other uses, see Spin-off.Investing in the new firm
equity
Being the first customer of the spin-off that helps create
cash flow
Providing incubation space (desk, chairs, phones, access, etc.)
Internet
Providing legal, finance, or technology services
was spun off from Eli Lilly and Company in 1994, formed from Lilly's Medical Devices and Diagnostics Division.
Guidant
spun off from Hewlett-Packard (HP) in 1999, formed from HP's former test-and-measurement equipment division. Later in 2014, Keysight was spun off from Agilent Technologies.
Agilent Technologies
was a Time Warner spin-off in 2009; this effectively was a demerger, as AOL had previously merged into Time Warner.
AOL
's publishing operations (and its broadcasting operations in Australia) were spun off as News Corp in 2013. The previous News Corporation's remaining media properties were retained under the name 21st Century Fox. In turn, 21st Century Fox was acquired by The Walt Disney Company in 2019, but most of its broadcast and cable properties were spun off to the new Fox Corporation while Disney retained the film and television production units.
News Corporation
After being acquired by , Index Corporation's video game operations were re-branded as Atlus, the name of a predecessor company, while its contents and solution businesses were spun off as a new company using the Index Corporation name in 2013.
Sega
In , the then-CJ E&M (now CJ ENM Entertainment Division) spun off its drama production and distribution division into a new subsidiary company called Studio Dragon in May 2016.
South Korea
Demerger
Divestment
Equity carve-out
Stub (stock)
Successor company
EIRMA (2003) "Innovation Through Spinning In and Out", Research Technology Management, Vol. 46, 63–64.
René Rohrbeck; Mario Döhler; Heinrich Arnold (20 April 2009). "Creating growth with externalization of R&D results—the spin‐along approach". Global Business and Organizational Excellence. 28 (4): 44–51. :10.1002/JOE.20267. ISSN 1932-2054. Wikidata Q104832450.
doi
Rohrbeck, R., Hölzle K. and H. G. Gemünden (2009): , R&D Management, Vol. 39, S. 420–430.
