What is Spinoff?

A spinoff is a type of divestiture event where a company creates a new independent company by selling or distributing new shares of its existing business.

A spinoff usually created with an expectation that it will worth more as an independent entity, hence the separation. The spinoff company will have a new name and separate management team, but  will retain the same assets, intellectual property, and human resources. At the same time, the parent company will continue to provide support in most cases.

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