What is "newco"

n. (context business English) A new company, especially one spun-off from or replacing an existing company as a legal fiction to maintain ownership over an entity while separating it from the old company financially.

NewCo or Newco is a generic name for proposed corporate spin-off, startup, or subsidiary companies 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".