Spinoff

Spinoff

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Idea Stage
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To be more focused or to unload units which have been a drag on growth, large companies and corporations split-up units from their main business, i.e. form spinoffs. More over, it is easier to manage growing business alongside a declining business.

Example:
Gannett Corporation split its print news business (USA Today and other newspapers) from its media business (TV channels and internet business). Both units had difficulties with making acquisitions. Separation has lead to having two independent businesses, that made searching for acquisition opportunities, and managing companies easier for both.

 

Source

Campbell A., 2014 When a spinoff makes strategic sense https://hbr.org/2014/08/when-a-spinoff-makes-strategic-sense

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