Corporate Orphan

A business unit or division that loses strategic importance due to changes in the larger corporation's overall goals. A corporate orphan can be created when a corporation fails to integrate a merger or acquisition successfully, or when a business or division fails to contribute to the overarching goals of the corporation. When this occurs quite often the business is spun off to preserve shareholder value.

An example of a corporate orphan would be Skype being acquired by eBay. After purchasing Skype in 2005, eBay tried for years to implement Skype's services without much success. However, one company's corporate orphan can be another's success. In 2009, eBay sold 70% of Skype to private equity investors. The investors then sold Skype to Microsoft in 2011, for a considerable profit.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Orphan initialism — is the changing of the official name of a corporation, advocacy group or any organization to an acronym or initialism. [1] Formed like any other acronym, the initial letters of the previous name are used. Such name changes are often connected to… …   Wikipedia

  • Little Orphan Annie — For James Whitcomb Riley s 1885 poem, see Little Orphant Annie. Little Orphan Annie Cupples Leon collection (1933) Author(s) Harold Gray Current status / sch …   Wikipedia

  • Coat of arms of Wigan — orphan}] The coat of arms of the Metropolitan Borough of Wigan were granted by the College of Arms to the borough council created in 1974. These arms replaced those granted to the County Borough of Wigan in 1922.Arms of Wigan Metropolitan Borough …   Wikipedia

  • Personal stylist — Orphan|date=April 2008A personal stylist is a person who typically advises individuals on, for example, new fashion trends, clothing styles, colours and make up.A personal stylist is a recognised profession not to be confused with a stylist whose …   Wikipedia

  • performing arts — arts or skills that require public performance, as acting, singing, or dancing. [1945 50] * * * ▪ 2009 Introduction Music Classical.       The last vestiges of the Cold War seemed to thaw for a moment on Feb. 26, 2008, when the unfamiliar strains …   Universalium

  • Pharmaceutical industry — The pharmaceutical industry develops, produces, and markets drugs licensed for use as medications.[1] Pharmaceutical companies are allowed to deal in generic and/or brand medications and medical devices. They are subject to a variety of laws and… …   Wikipedia

  • WWE — WWE, Inc. Type Public Tra …   Wikipedia

  • New Orleans — • Archdiocese in the southern United States Catholic Encyclopedia. Kevin Knight. 2006. New Orleans     New Orleans     † …   Catholic encyclopedia

  • NBC Red Network — NBC Red Network/ NBC Radio Network Type Radio Network Country …   Wikipedia

  • Media bias in the United States — Journalism News · Writing style Ethics · Objectivity Values · …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.