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Definition 2024


earnout

earnout

English

Noun

earnout (plural earnouts)

  1. (business, finance) A formula by which the management of a company earns a share of the company's share capital by achieving results above pre-determined levels.
    • 2007 October 18, Brad Stone, “EBay Reports 3rd-Quarter Growth, With Some Blemishes”, in New York Times:
      The earnout was definitely getting in the way of running Skype the way we wanted to run it.