Explained: What is a spin-off in corporate terms? Explained: What is a spin-off in corporate terms? In essence, a spin-off is similar to a de-merger or divestiture. It is better known as a starburst or spin-out. Shreya Chaware / Friday, March 25, 2022 0 1074 Article rating: 5.0 A spin-off is an operational corporate strategy wherein the parent company separates a particular division into a new independent publicly traded entity or subsidiary. Read more