Spun-off

The act of separating a segment, division, or subsidiary company from a larger parent company, creating an independent entity. This often involves distributing shares of the new company to the parent company's shareholders, who then become shareholders of both entities. The primary aim is to streamline operations, unlock shareholder value, allow for focused management, or enable the spun-off entity to pursue independent growth strategies unencumbered by the parent company's structure or strategic direction. It's a strategic business maneuver frequently employed in corporate restructuring.

Spun-off meaning with examples

• The telecommunications giant decided to **spin off** its broadband division to focus on its core mobile business, hoping to create more nimble units. This allowed the new company to attract investors with expertise in that market, resulting in a more competitive stance and greater market share.
• Due to market conditions, the conglomerate decided to **spin off** their struggling automobile division. The new company will undergo restructuring. This strategic move offered investors greater flexibility in managing risk, leading to optimism.