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{{More citations needed|date=November 2017}}
A '''corporate spin-off''', also known as a '''spin-out''',<ref>New Zealand Master Tax Guide (2013 edition) – p. 771 1775470024 CCH New Zealand Ltd – 2013 "Essentially, a 'spinout' involves the transfer by a parent company of shares in a wholly owned subsidiary to the shareholders in the parent. To the extent that there is a common interest in the old and new holding companies, the spinout ..."</ref> or '''starburst''' or '''hive-off''',<ref>{{cite web |title=Definition of hive off |url=https://www.thefreedictionary.com/hive+off |url-status=live |archive-url=https://web.archive.org/web/20210409231335/https://www.thefreedictionary.com/hive+off |archive-date=9 April 2021 |access-date=10 April 2021 |website=The Free Dictionary}}</ref> is a type of [[corporate action]] where a [[company]] "splits off" a section as a separate [[business]] or creates a second incarnation, even if the first is still active.<ref name="econ">{{cite news |date=March 24, 2011 |title=Starbursting |newspaper=[[The Economist]] |url=http://www.economist.com/node/18440915?story_id=18440915 |url-status=live |url-access=subscription |access-date=April 18, 2011 |archive-url=https://web.archive.org/web/20200807195044/https://www.economist.com/business/2011/03/24/starbursting?story_id=18440915 |archive-date=Aug 7, 2020}}</ref> It is distinct from a sell-off, where a company sells a section to another company or firm in exchange for cash or securities.
==Characteristics==
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===Conglomerate discount===
According to ''The Economist'', another driving force of the proliferation of spin-offs is what it calls the "[[conglomerate discount]]" — that "stockmarkets value a [[Diversification (finance)|diversified]] group at less than the sum of its parts".<ref name="econ"/>
==Examples==
Some examples of spin-offs (according to the SEC definition):
* [[Guidant]] was spun off from [[Eli Lilly and Company]] in 1994, formed from Lilly's Medical Devices and Diagnostics Division.
* [[Agilent Technologies]] spun off from [[Hewlett-Packard]] (HP) in 1999, formed from HP's former test-and-measurement equipment division. Later in 2014, [[Keysight]] was spun off from Agilent Technologies.
* [[Expedia Group]] was spun off from [[Microsoft]] in 1999, with its eponymous subsidiary [[Expedia.com|Expedia]].
* [[DreamWorks Animation]] was spun off from [[DreamWorks Studios|DreamWorks Pictures]] in 2004.
* [[Covidien]] was spun off from [[Tyco International]] in 2007.
* [[TE Connectivity]] was spun off from [[Tyco International]] in 2007.
* [[Cenovus Energy]] was spun off from Encana (now [[Ovintiv]]) in 2009.
* [[AOL]] was a [[Time Warner]] spin-off in 2009; this effectively was a [[demerger]], as AOL had previously merged into Time Warner.
* [[Ocean Rig UDW Inc|Ocean Rig]] was spun off from [[Dryships Inc|DryShips]] in September 2011.
* [[News Corporation (1980–2013)|News Corporation]]'s publishing operations (and its broadcasting operations in Australia) were spun off as [[News Corp (2013–present)|News Corp]] in 2013. The previous News Corporation's remaining media properties were retained under the name [[21st Century Fox]]. In turn, 21st Century Fox was acquired by [[The Walt Disney Company]] in 2019, but most of its broadcast and cable properties were spun off to the new [[Fox Corporation]] while Disney retained the film and television production units.
* After being acquired by [[Sega]], [[Index Corporation]]'s video game operations were re-branded as [[Atlus]], the name of a predecessor company, while its contents and solution businesses were spun off as a new company using the Index Corporation name in 2013.
* [[Mallinckrodt|Mallinckrodt Pharmaceuticals]] was spun off from [[Covidien]] in 2013.
*[[Viacom (1952–2006)|Viacom]] was spun off from [[CBS]] in 1971.
*[[Fortive]] and [[Envista]] were spun off from [[Danaher Corporation|Danaher]] in 2016 and 2019 respectively.
*In [[South Korea]], the then-[[CJ E&M]] (now [[CJ ENM]] Entertainment Division) spun off its drama production and distribution division into a new subsidiary company called [[Studio Dragon]] in May 2016.
Examples following the second definition of spin-out:
* [[Fairchild Semiconductor]] was a spin-out of Shockley Transistor; the founders were Shockley's "[[traitorous eight]]"
* [[Intel]] was in turn a spin-out of Fairchild, as were many firms in the semiconductor industry
===Academia===
An example of companies created by [[technology transfer]] or licensing:
* Since 1997, [[Isis Innovation|Oxford University Innovation]] has helped create more than 70 spin-out companies,<ref>{{cite web |title=About Isis |url=http://www.isis-innovation.com/about/index.html |url-status=dead |archive-url=https://web.archive.org/web/20131115010917/http://www.isis-innovation.com/about/index.html |archive-date=November 15, 2013 |access-date=November 14, 2017 |website=Oxford University Innovation |publisher=[[University of Oxford]]}}</ref> and now, on average, every two months a new company is spun out of "academic research generated within and owned by the University of Oxford". Over £266 million in external investment has been raised by spin-out companies since 2000, and five are currently listed on the [[London Stock Exchange]]'s [[Alternative Investment Market]].<ref>{{cite web |title=Spin-out Companies |url=http://www.isis-innovation.com/spinout/index.html |archive-url=https://web.archive.org/web/20140707013026/http://www.isis-innovation.com/spinout/index.html |archive-date=Jul 7, 2014 |access-date=June 9, 2014 |website=Oxford University Innovation |publisher=[[University of Oxford]]}}</ref>
==See also==
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