In this article, we are going to look at the 7 Spin-Off Companies in 2025.
A corporate spin-off typically involves a company separating a part of its existing business as a standalone entity while the parent company remains active. The US Securities and Exchange Commission defines a spin-off as a transaction in which a parent company distributes shares of a subsidiary to its shareholders, thereby creating a separate, independent company.
Companies may pursue spin-offs for several reasons. Most often, the decision is driven by a lack of synergy between business divisions or due to a suboptimal allocation of resources. A parent company may also seek to enable a business unit to reach its full potential and grow more rapidly independently. As a result, each newly formed entity can focus on a distinct strategy and objectives to improve overall competitiveness.
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Over time, some companies may become overly diversified, developing complex ownership structures that contribute to a holding-company discount. A spin-off can help eliminate such discounts by simplifying operations and increasing focus on the core business. In addition, when structured as a tax-free transaction, a spin-off also allows parent companies to distribute shares of the new entity to their shareholders without any party incurring capital gains tax.
Some of these themes came to the fore in a December 10 CNBC interview, in which Peter Ter Kulve, CEO of The Magnum Ice Cream Company, discussed the company’s prospects following its recent spin-off from Unilever. He said that the decision to separate the business was driven by focus. According to him, Unilever needed to concentrate on its broader categories, while Magnum required dedicated focus on ice cream. He further stated:
“I now have 19,000 people who go to bed thinking about ice cream, who get up thinking about ice cream, and we’re able to invest behind growth opportunities. And we don’t have to balance that between all kinds of different categories in Unilever. But the focus is on ice cream.”
Do Spin-Offs Create Shareholder Value?
Despite their many strategic benefits, there has long been scepticism about the performance of spun-off companies. While there is no recent comprehensive study on this topic, Harvard Business Review (HBR) examined the subject in 2022 (“Research: Few Corporate Spinoffs Deliver Value”), analyzing more than 350 public spin-offs valued at more than $1 billion between 2000 and 2020.
Surprisingly, the study found that 50% of companies pursuing a separation failed to create any incremental shareholder value two years later, while about 25% destroyed significant value. There was also a vast disparity between the performances of winners and losers. The HBR researchers noted:
“Companies in the bottom quartile completed separations that actually destroyed value by as much as 50% of the combined market cap. At the same time, while most companies saw little for their efforts, top-quartile separations performed exceptionally well, with 75% higher combined market cap two years after the separation.”
With that background, let us explore the seven spin-off companies in 2025.
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Our Methodology
To identify the stocks for this article, we screened for companies spun off in 2025. We excluded companies that were too small or had received no active coverage from either analysts or financial media. We then selected seven companies and ranked them by market cap in ascending order. Additionally, we included data on hedge fund holdings in these companies, based on Q3 2025 data from Insider Monkey’s database, to provide further insight into investor interest.
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Note: All pricing data is as of market close on December 26, 2025.
7. Angi Inc. (NASDAQ:ANGI)
Market Cap: $561.4 Million
Date of Spin-off: 01-Apr-2025
Number of Hedge Fund Holders: 25
Angi Inc. (NASDAQ:ANGI) is the first and smallest of the spin-off companies in 2025. The company was part of IAC Inc. (NASDAQ:IAC), a media and internet company, which completed the spin-off on March 31, 2025, through a special dividend (a distribution) of all Angi common stock, owned by IAC, to holders of IAC common stock and IAC Class B common stock. Before the spin-off, Angi was a listed company, but IAC controlled it through its economic and voting interests in Angi of 85.3% and 98.3%, respectively, as of December 31, 2024.
In a recent analyst update, RBC Capital Markets analyst Brad Erickson reiterated a Hold rating on Angi Inc. (NASDAQ:ANGI) with a price target of $18.00 on December 17. As a relatively small company, Angi hasn’t seen significant analyst activity recently, particularly after reporting weaker-than-expected earnings in early November.
As of December 26, the consensus view remains cautious: only 40% of analysts covering the stock assign a Buy rating, and the remainder rate it a Hold. There is a substantial divergence between the high ($27) and low ($14) price targets, with the median price target of $18 still indicating nearly 42% upside.
Consistent with the cautious analyst view, the company’s share price has been volatile. Since the spin-off, the stock has declined around 18% and nearly 24% year to date.
As of the latest update, the company has consolidated its five international business platforms into a single unified platform. It is now working to integrate this platform with three of its U.S. platforms into a single global platform, with a target completion date of Q1 2027. The company is also accelerating software development to create a modern AI-first platform.
Angi Inc. (NASDAQ:ANGI) operates platforms for home services, connecting home professionals with consumers across more than 500 categories, from home repair and remodelling to cleaning and landscaping.
6. Millrose Properties Inc. (NYSE:MRP)
Market Cap: $5.0 Billion
Date of Spin-off: 07-Feb-2025
Number of Hedge Fund Holders: 34
Millrose Properties Inc. (NYSE:MRP) is among the spin-off companies in 2025. Millrose was previously a wholly owned subsidiary of Lennar Corp. (NYSE:LEN), which, on February 7, 2025, completed the spin-off of Millrose, distributing approximately 80% of Millrose’s stock to its stockholders. After this transaction, MRP became an independent company listed on the NYSE.
As part of the Spin-Off, Lennar contributed $5.5 billion in land assets, including approximately 87,000 homesites, and $1 billion in cash to the company. However, it retained approximately 20% of Milrose’s outstanding common stock.
In a vote of confidence, on December 2, BTIG analyst Ryan Gilbert initiated coverage on Millrose Properties Inc. (NYSE:MRP) with a Buy recommendation and a price target of $35, according to The Fly. The initiation was part of Gilbert’s industry initiation note on the homebuilding and real estate services sector, and the analyst believes Milrose stock is “cheap relative to the opportunity.” Moreover, his positive thesis was based on the belief that the company can provide builders with a “compelling rate, both due to its cost of capital advantages and services via its technology platform.”
Additionally, on December 22, the company announced a quarterly cash dividend of approximately $124.5 million, or $0.75 per share, which exceeded the $0.73 per share paid in October. The record date for the dividends is January 5, 2026, and they will be payable on January 15.
Since its spin-off and subsequent listing, the company’s stock has performed strongly, rising 41%.
Millrose Properties Inc. (NYSE:MRP) is a Homesite Option Purchase Platform (HOPP’R) for residential homebuilders. The company purchases and develops residential land and sells finished homesites back to homebuilders through option contracts with pre-agreed prices and a set schedule.
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