How Stock Spinoffs Work — And How They've Performed
In theory, stock spinoffs should reward investors, but performance is mixed. Anyone who has watched Better Call Saul or Frasier is familiar with the spinoff concept, in which characters from an existing series branch off in a new show with a different story line. It works sort of the same way in corporate America with stock spinoffs, when firms split off a part of their business into a new, publicly traded company, usually via a tax-free distribution of the stock to shareholders of the original
Source: yahoo.com