Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

What Is a Subsidiary? Definition & How It Operates

By Catherine Brock – Updated Jul 5, 2025 at 5:32PM

Key Points

  • Subsidiaries are over 50% owned by parent companies but act as separate legal entities.
  • Parent firms merge subsidiary financial results for a consolidated report unless the stake is under 50%.
  • Disney incorporates ESPN's operational figures into its broad financial statements, enhancing transparency.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Our Guides

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.