A NewCo or Newco is a term used to describe a corporate spin-off,

startup A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship refers to all new businesses, including self-employment and businesses that never intend t ...

, or subsidiary company before they are assigned a final name, or to proposed merged companies to distinguish the to-be-formed combined entity with an existing company involved in the merger which may have the same (or a similar) name. In a handful of cases the new company may retain the name "Newco". The term can also be used to describe a company that was created to replace its predecessor, which ceased to exist for reasons such as financial issues: the

creation Creation may refer to: Religion *''Creatio ex nihilo'', the concept that matter was created by God out of nothing *Creation myth, a religious story of the origin of the world and how people first came to inhabit it *Creationism, the belief that ...

of a NewCo to continue the existence of

Rangers F.C. Rangers Football Club is a Scottish professional football club based in the Govan district of Glasgow which plays in the Scottish Premiership. Although not its official name, it is often referred to as Glasgow Rangers outside Scotland. The fo ...

was a notable example.

Examples

* IBM GTS - Managed Infrastructure Services →

Kyndryl Kyndryl Holdings, Inc. is an American multinational information technology infrastructure services provider that designs, builds, manages and develops large-scale information systems. The company was created from the spin-off of IBM's infrastr ...

* 3M’s data storage business (spun off in 1996) → Imation (later renamed GlassBridge in 2017) *

Abbott Laboratories Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in 1888 to formulate known dr ...

pharmaceutical division →

AbbVie AbbVie is an American publicly traded biopharmaceutical company founded in 2013. It originated as a spin-off of Abbott Laboratories. History On October 19, 2011, Abbott Laboratories announced its plan to separate into two publicly traded comp ...

Atlas Copco Atlas Copco (Copco from Compagnie Pneumatique Commerciale) is a Swedish multinational industrial company that was founded in 1873. It manufactures industrial tools and equipment. The Atlas Copco Group is a global industrial group of companies ...

Mining and Rock Excavation Technique business area →

Epiroc Epiroc AB is a Swedish manufacturer of mining and infrastructure equipment. It is headquartered in Stockholm, Sweden and has its manufacturing facilities in Sweden, United States, Canada, Australia, China, India, Japan and Germany. History Epir ...

AT&T AT&T Inc. is an American multinational telecommunications holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world's largest telecommunications company by revenue and the third largest provider of mobile te ...

computer hardware subsidiary → NCR *

Bayer Bayer AG (, commonly pronounced ; ) is a German multinational pharmaceutical and biotechnology company and one of the largest pharmaceutical companies in the world. Headquartered in Leverkusen, Bayer's areas of business include pharmaceutica ...

chemicals operations →

Lanxess Lanxess AG is a German specialty chemicals company based in Cologne, Germany that was founded in 2004 via the spin-off of the chemicals division and parts of the polymers business from Bayer AG. Shares in Lanxess AG were listed in Germany’s DAX ...

* BP petrochemicals group → Innovene *

Ford Motor Company Ford Motor Company (commonly known as Ford) is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobile ...

vehicle components division → Visteon *

Hewlett-Packard The Hewlett-Packard Company, commonly shortened to Hewlett-Packard ( ) or HP, was an American multinational information technology company headquartered in Palo Alto, California. HP developed and provided a wide variety of hardware components ...

instrumentation division →

Agilent Technologies Agilent Technologies, Inc. is an American life sciences company that provides instruments, software, services, and consumables for the entire laboratory workflow. Its global headquarters is located in Santa Clara, California. Agilent was establi ...

* Karstadt Warenhaus AG merging with Quelle AG →

Arcandor Arcandor AG was a holding company located in Essen, Germany, that oversaw a number of companies operating in the businesses of mail order and internet shopping, department stores and tourism services. It was formed in 1999 by the merger of Kars ...

Northwest Airlines Northwest Airlines Corp. (NWA) was a major American airline founded in 1926 and absorbed into Delta Air Lines, Inc. by a merger. The merger, approved on October 29, 2008, made Delta the largest airline in the world until the American Airlines ...

regional operations → Compass Airlines * Merged entity of

NBC Universal The National Broadcasting Company (NBC) is an American English-language commercial broadcast television and radio network. The flagship property of the NBC Entertainment division of NBCUniversal, a division of Comcast, its headquarters are ...

& Comcast programming assets→

NBCUniversal NBCUniversal Media, LLC is an American multinational mass media and entertainment conglomerate corporation owned by Comcast and headquartered at 30 Rockefeller Plaza in Midtown Manhattan, New York City, United States. NBCUniversal is primari ...

RAG Beteiligungs-AG RAG AG, formerly Ruhrkohle AG, is the largest German coal mining corporation. The company headquarters are in Essen in the Ruhr area. The company was founded on 27 November 1968, consolidating several coalmining corporations into the Ruhrkohl ...

(

Degussa Evonik Industries AG is a stock-listed German specialty chemicals company headquartered in Essen, North Rhine-Westphalia, Germany. It is the second largest chemicals company in Germany, and one of the largest specialty chemicals companies in the ...

, Steag, Immobilien AG →

Evonik Industries Evonik Industries AG is a stock-listed German specialty chemicals company headquartered in Essen, North Rhine-Westphalia, Germany. It is the second largest chemicals company in Germany, and one of the largest specialty chemicals companies in the ...

* The Rangers Football Club plc (liquidated in 2012) → Sevco Scotland Ltd (later renamed The Rangers Football Club Ltd) * Siemens semiconductor subsidiary →

Infineon Infineon Technologies AG is a German semiconductor manufacturer founded in 1999, when the semiconductor operations of the former parent company Siemens AG were spun off. Infineon has about 50,280 employees and is one of the ten largest semicon ...

* Barnes & Noble's Nook subsidiary → Nook Media *

DaimlerChrysler The Mercedes-Benz Group AG (previously named Daimler-Benz, DaimlerChrysler and Daimler) is a German multinational automotive corporation headquartered in Stuttgart, Baden-Württemberg, Germany. It is one of the world's leading car manufacture ...

MTU Friedrichshafen MTU Friedrichshafen GmbH is a German manufacturer of commercial internal combustion engines founded by Wilhelm Maybach and his son Karl Maybach in 1909. Wilhelm Maybach was the technical director of Daimler-Motoren-Gesellschaft (DMG), a predec ...

division →

Tognum Rolls-Royce Power Systems AG is a German company owned by Rolls-Royce Holdings with holdings in engine manufacturing brands and facilities. The company previously traded, from 2006 to 2014, as Tognum AG. Prior to 2006, the core company – MTU ...

(later acquired by

Rolls-Royce plc Rolls-Royce Holdings plc is a British multinational aerospace and defence company incorporated in February 2011. The company owns Rolls-Royce, a business established in 1904 which today designs, manufactures and distributes power systems for ...

and now the

Rolls-Royce Power Systems Rolls-Royce Power Systems AG is a German company owned by Rolls-Royce Holdings with holdings in engine manufacturing brands and facilities. The company previously traded, from 2006 to 2014, as Tognum AG. Prior to 2006, the core company – MTU ...

subsidiary) * Merged entity of

T-Mobile USA T-Mobile US, Inc. is an American wireless network operator headquartered in Overland Park, Kansas and Bellevue, Washington, U.S. Its largest shareholder is a multinational telecommunications company Deutsche Telekom AG, which , holds 48.4 p ...

and

MetroPCS Metro by T-Mobile (formerly known as MetroPCS and also known simply as Metro) is an American prepaid wireless service provider and brand owned by T-Mobile US. It previously operated the fifth largest mobile telecommunications network in the U ...

→ corporate name of

T-Mobile US T-Mobile US, Inc. is an American wireless network operator headquartered in Overland Park, Kansas and Bellevue, Washington, U.S. Its largest shareholder is a multinational telecommunications company Deutsche Telekom AG, which , holds 48.4 per ...

; kept both T-Mobile and MetroPCS (later modified to

Metro by T-Mobile Metro by T-Mobile (formerly known as MetroPCS and also known simply as Metro) is an American prepaid wireless service provider and brand owned by T-Mobile US. It previously operated the fifth largest mobile telecommunications network in the U ...

) brands

References

{{business-stub Business terms

Examples

See also

References