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Find sources: — · · · · November 2017 A corporate spin-off, also known as a spin-out, or starburst, is a type of where a company "splits off" a section as a separate business.
Shareholders of the parent company receive equivalent shares in the new company in order to compensate for the loss of equity in the original stocks.
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In contrast, can also sever one business from another, but the assets are sold off rather than retained under a renamed corporate entity.
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For example, when was spun off from in 1999, the stock holders of HP received Agilent stock.
A company not considered a spin-off in the SEC's definition but considered by the SEC as a technology transfer or licensing of technology to the new company may also be called a spin-off in common usage.
The prior employer can be a firm, a university, or another organization.
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In some cases, the spin-out may license technology from the parent or supply the parent with products or services; conversely, they may become competitors.
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The previous News Corporation's remaining media properties were retained under the name.
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Over £266 million in external investment has been raised by Isis spin-out companies since 2000, and five are currently listed on the 's AIM.
It simplifies the process of listing the shares on a public.
It works by an existing public company issuing a at a 1-for-1 rate in the new company.
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For the operating company it is much faster and possibly also cheaper than the normal requirements of complying with the of most exchanges.
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In the United States, a mirror company may be formed tax-free by complying with the requirements of.
To the cash spin meaning that there is a common interest in the old and new holding companies, the spinout.
Retrieved April 18, 2011.
Retrieved January 17, 2015.
Petersfield, Hampshire: Harriman House.
Retrieved November 14, 2017.
Retrieved November 14, 2017.
Retrieved November 14, 2017.
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Retrieved June 9, cash spin meaning />Arnold 2009 : Global Business and Organizational Excellence, 28, 44-51.
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