A type of corporate reorganization whereby the stock of a subsidiary is exchanged for shares in a parent company.
This is a somewhat rare situation. For example, Viacom announced a split off of its interest in Blockbuster in 2004 whereby Viacom offered its shareholders stock in Blockbuster in exchange for an appropriate amount of Viacom stock.
Read more: http://www.investopedia.com/terms/s/split-off.asp#ixzz1rjwetZrY
SPINOFF
The creation of an independent company through the sale or distribution of new shares of an existing business/division of a parent company. A spinoff is a type of divestiture.
Businesses wishing to ‘streamline’ their operations often sell less productive, or unrelated subsidiary businesses as spinoffs. The spun-off companies are expected to be worth more as independent entities than as parts of a larger business.
Read more: http://www.investopedia.com/terms/s/spinoff.asp#ixzz1rjwlngBD
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From Investopedia:
SPLIT-OFF
A type of corporate reorganization whereby the stock of a subsidiary is exchanged for shares in a parent company.
This is a somewhat rare situation. For example, Viacom announced a split off of its interest in Blockbuster in 2004 whereby Viacom offered its shareholders stock in Blockbuster in exchange for an appropriate amount of Viacom stock.
Read more: http://www.investopedia.com/terms/s/split-off.asp#ixzz1rjwetZrY
SPINOFF
The creation of an independent company through the sale or distribution of new shares of an existing business/division of a parent company. A spinoff is a type of divestiture.
Businesses wishing to ‘streamline’ their operations often sell less productive, or unrelated subsidiary businesses as spinoffs. The spun-off companies are expected to be worth more as independent entities than as parts of a larger business.
Read more: http://www.investopedia.com/terms/s/spinoff.asp#ixzz1rjwlngBD