spin-offs

A spin-off occurs when a company creates a new, independent company by separating part of its operations or assets. The original company "spins off" this new company, often to focus on its core business or unlock value. Shareholders of the parent company typically receive shares in the new entity. Spin-offs are common in corporate strategy to improve efficiency, better target markets, or increase shareholder value. The new company operates separately but may still have some ongoing relationships with the original organization.