5 Corporate Spinoff

1. HP (Hewlett-Packard)

• Prior to Split Announcement: Hewlett-Packard (HP) was a large technology conglomerate with a broad portfolio including personal computers, printers, enterprise IT infrastructure, software, and services. By the early 2010s, HP was facing challenges managing its diverse businesses and competing effectively across all segments.

• After Split Announcement (October 6, 2014): On October 6, 2014, HP announced its plan to separate into two independent publicly traded companies. The market reacted positively as investors anticipated that separating the faster-growing enterprise business from the PC and printer business would allow for greater focus and efficiency for each entity.

• Split Event (November 1, 2015): HP officially separated on November 1, 2015.

  • HP Inc. (HPQ) was created, focusing on personal computers and printers.

  • Hewlett Packard Enterprise (HPE) was formed, concentrating on enterprise technology infrastructure, software, and services.

• Share Distribution Ratio: For every one share of HP stock owned before the split, shareholders received:

  • One share of HP Inc. (HPQ)

  • One share of Hewlett Packard Enterprise (HPE)

2. eBay

• Prior to Split Announcement: eBay was a leading e-commerce and online payment company, encompassing the eBay marketplace and PayPal. By the mid-2010s, there was growing pressure to separate PayPal, as its high-growth potential in the burgeoning fintech sector was perceived to be limited within eBay's structure.

• After Split Announcement (September 30, 2014): eBay announced on September 30, 2014, its plan to spin off PayPal into an independent publicly traded company. Investors responded favorably, believing PayPal would flourish as a standalone entity, separate from the slower-growth marketplace business.

• Split Event (July 17, 2015): eBay completed the spin-off of PayPal on July 17, 2015.

  • PayPal Holdings, Inc. (PYPL) became an independent entity focused on digital payments.

  • eBay Inc. (EBAY) continued as the e-commerce marketplace company.

• Share Distribution Ratio: For every one share of eBay stock owned before the split, shareholders received:

  • One share of eBay Inc. (EBAY)

  • One share of PayPal Holdings, Inc. (PYPL)

3. DowDuPont

• Prior to Split Announcement: Dow Chemical and DuPont were two of the world's largest chemical companies with diverse portfolios in agriculture, materials science, and specialty products. Facing industry consolidation and calls for streamlining, they saw an opportunity to merge and subsequently split into more specialized businesses.

• After Split Announcement (December 11, 2015): On December 11, 2015, Dow and DuPont announced a merger of equals, with the intention to later split the combined entity into three independent, publicly traded companies, each focused on a distinct sector. The rationale was to enhance specialization, efficiency, and shareholder value through these focused business segments.

• Split Event (April 1, 2019 - June 1, 2019): DowDuPont executed its planned separation in stages throughout 2019:

  • Dow Inc. (DOW) was spun off on April 1, 2019, concentrating on materials science.

  • Corteva, Inc. (CTVA) was spun off on June 1, 2019, focusing on agriculture.

  • DuPont de Nemours, Inc. (DD) (later renamed DuPont) was established, specializing in specialty products.

• Share Distribution Ratio: For every one share of DowDuPont stock owned before the split, shareholders received:

  • One share of Dow Inc. (DOW)

  • One share of Corteva, Inc. (CTVA)

  • One share of DuPont de Nemours, Inc. (DD)

4. Siemens Energy

• Prior to Split Announcement: Siemens AG was a German industrial conglomerate with varied operations in energy, healthcare, industry, and infrastructure. By the late 2010s, Siemens aimed to simplify its structure and allow its energy business to operate more autonomously, particularly as the energy sector underwent significant changes with the rise of renewables and the push for decarbonization.

• After Split Announcement (September 2019): In September 2019, Siemens announced its plan to spin off its Gas and Power division into a separate publicly listed company. The goal was to provide the energy business with greater entrepreneurial freedom and flexibility to adapt to the evolving energy market, while Siemens AG concentrated on its core industrial technology businesses.

• Split Event (September 28, 2020): Siemens Energy was spun off and began trading as a separate public company on September 28, 2020.

  • Siemens Energy AG (ENR) was created, encompassing Siemens' gas and power, renewable energy (via Siemens Gamesa Renewable Energy), and related services businesses.

  • Siemens AG (SIE) continued as a focused industrial technology company.

• Share Distribution Ratio: For every two shares of Siemens AG stock owned before the spin-off, shareholders received:

  • One share of Siemens Energy AG (ENR)

  • Two shares of Siemens AG (SIE) were retained.

5. VMware (from Dell Technologies)

• Prior to Split Announcement: Dell Technologies was a large technology company formed by the merger of Dell and EMC. VMware, specializing in cloud computing and virtualization software, was a significant part of Dell Technologies. However, it was believed that VMware's value was not fully realized within Dell, and greater independence could benefit VMware in the rapidly changing cloud market.

• After Split Announcement (April 15, 2021): Dell Technologies announced on April 15, 2021, its plan to spin off VMware as a separate public company. The rationale was that a spin-off would simplify capital structures and enable both Dell and VMware to pursue independent strategies in their respective markets, thereby enhancing shareholder value.

• Split Event (November 1, 2021): Dell Technologies completed the spin-off of VMware on November 1, 2021.

  • VMware, Inc. (VMW) became an independent publicly traded company focused on cloud computing and virtualization software (later acquired by Broadcom in 2022).

  • Dell Technologies Inc. (DELL) continued as a focused infrastructure and PC company.

• Share Distribution Ratio: For every 10 shares of Dell Technologies stock owned, shareholders received:

  • Approximately 0.120988 shares of VMware (VMW) Class A common stock.

  • 10 shares of Dell Technologies Inc. (DELL) were retained.

  • This was not a 1-for-1 distribution due to the complex capital structure and VMware's existing public float prior to the spin-off.