What is a spinoff?

When ever a spinoff happens then an existing company makes a new company from the old one by dividing it self and releasing new shares. Spinoffs are made every time when a part of a company would be more valued if it would be an independent one then remaining in or under the old one. The new shares which are released as the result of the spinoff are distributed to the current shareholders in proportion to their current standings, and these shares can be sent out to the public as well. In conclusion the spun-off company is expected to worth more then if it were in the parent company.