Webster's New World College Dictionary Copyright © 2010 by Wiley Publishing, Inc., Cleveland, Ohio.
- the divestiture by a corporation of some of its assets or operations, accomplished by distributing to its stockholders shares of a new company formed to assume control over the divested parts
- the divestiture of a subsidiary by distributing its shares in this way
- the new company or subsidiary so divested
- a secondary benefit, product, development, etc., as a television series built around a character, situation, etc. in another series
Used by arrangement with John Wiley & Sons, Inc.
The American Heritage® Dictionary of the English Language, 4th edition Copyright © 2010 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
- a. 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.b. The new company formed by such a divestiture.
- Something, such as a product, that is derived from something larger and more or less unrelated; a byproduct.
- Something derived from an earlier work, such as a television show starring a character who had a popular minor role in another show.
spinoff - Business Definition
The American Heritage® Dictionary of Business Terms Copyright © 2010 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
The distribution to stockholders of the stock of a subsidiary held by a parent company. Usually the distribution is not taxable to the stockholders until the new shares have been sold. Compare splitoff. See also partial spinoff.Case Study On December 8, 2006, the directors of Duke Energy approved a spinoff to Duke Energy shareholders of all the shares of wholly owned subsidiary Spectra Energy. Spectra Energy represented all of the assets and liabilities of Duke Energy's natural gas business, including distribution, transmission, storage, and gathering. Shareholders of Duke Energy would receive 0.5 shares of Spectra Energy common stock for each share of Duke Energy common stock held. For example, the owner of 300 shares of Duke Energy would receive 150 shares of Spectra Energy. Following the spinoff, Duke shareholders could sell or retain the Spectra Energy shares they had received. They also had the option of retaining their Spectra Energy stock and disposing of their Duke Energy shares. The spinoff allowed investors to have a direct investment in the specific industry. Separate shares of stock would also allow Spectra Energy management more flexibility in raising capital for expansion and acquisitions. The spinoff was tax-free to Duke Energy shareholders.
spinoff - Investment & Finance Definition
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2010 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.