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The three types of corporate divisions are commonly known as spin-offs, split-offs and split-ups. The spin-off involves a distribution of property to shareholders without the surrender of any stock, which thus resembles a dividend. The split-off resembles a redemption because the shareholders have relinquished stock of the distributing corporation.
Comcast said it is structured as a tax-free spin-off. ... and how NBCU will split up its advertising-sales division, which currently spans its full TV and streaming lineup.
A Reverse Morris Trust is used when a parent company has a subsidiary (sub-company) that it wants to sell in a tax-efficient manner. The parent company completes a spin-off of a subsidiary to the parent company's shareholders. Under Internal Revenue Code section 355, this could be tax-free if certain criteria are met. The former subsidiary (now ...
What Are the Tax Implications of Spinoffs? Spinoffs are usually tax-free transactions for shareholders. A company is essentially breaking itself into smaller pieces while maintaining the same ...
United Online to Complete Tax-Free Spin Off of FTD on November 1, 2013 WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- United Online, Inc. (NAS: UNTD) today announced that the U.S. Securities and ...
[3] [4] [5] It was also meant to take advantage of the lack of corporate income taxes on REITs. [6] Hilton announced definitive plans in February 2016 to spin off a REIT (Park Hotels & Resorts) and its timeshare business (Hilton Grand Vacations) as separate companies. [7] [8] The spin-offs were completed on January 4, 2017.
The tax-free spin-off is expected to take a year to complete. "The most likely buyers of these cable channels are private equity firms or other media conglomerates," said Emarketer analyst Ross Benes.
Spin-offs occur when the equity owners of the parent company receive equity stakes in the newly spun off company. [6] For example, when Agilent Technologies was spun off from Hewlett-Packard (HP) in 1999, the stockholders of HP received Agilent stock. A company not considered a spin-off in the SEC's definition (but considered by the SEC as a ...