There are two types of divestitures: selloffs and spinoffs. For spinoffs, assets are sold by one firm to another firm.

Name: There are two types of divestitures: selloffs and spinoffs. For spinoffs, assets are sold by one firm to another firm.
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For spinoffs, assets are not sold to another firm. Instead, they are transferred to a separate, independent company that is then given to shareholders of the original company as a dividend.

There Are Two Types of Divestitures: Selloffs and Spinoffs