Phillips 66 (PSX), Mondelez International Inc (MDLZ) Among The Most Successful Spin Off Companies

What are the most successful spin off companies? When it comes to large corporations, it often seems like some companies have used up all possibilities to increase their value and appreciation in the eyes of shareholders. However, sometimes an ace in the proverbial sleeve could be a spin off of a division or subsidiary of a company. A spin off is the process of separating a division of a large company into a separate business, and throwing all the assets, liabilities, and employees into another company with its own management, and even its own publicly tradable shares. A spin off is one of the best solutions for a company to cut down its expenses, and at the same time to get rid of assets that do not bring any significant value.

In this way, through a spin off, the new company gets its own shareholders, and therefore the parent company is not distracted and can better mind its own business. At the same time, it often happens that both the parent company and the newly-formed company do a lot better separated.

For example, after their merger in 2000, Time Warner Inc (NYSE:TWX) and AOL, Inc. (NYSE:AOL) decided to spin off in 2009, since the merger was not very productive. Aside from AOL, Inc. (NYSE:AOL), Time Warner Cable Inc (NYSE:TWC) and Warner Music Group are two other spin offs from Time Warner Inc (NYSE:TWX).

And even though Time Warner Inc (NYSE:TWX) is a good example that proves that a spin off might turn out into the formation of a successful company, on the market there are some other enterprises that are doing splendidly after being spun off from their parent companies. With this in mind, we have compiled a list of top most successful spin off companies.