Definition of: spin-off

(spin′ôf′, -of′) noun
1. Action of a corporation in divesting itself, tax free, of a segment or division of its operations by transfer to a new, independently owned and managed company, the stockholders of the original corporation receiving the new shares pro rata.
2. A new application or incidental result, especially if beneficial; off-shoot or by-product; also, such applications or results considered collectively: commercial spin-off from the government's aerospace program: also spin′off′.