Comcast today announced plans to spin off NBCUniversal cable TV networks such as USA, CNBC, and MSNBC into a new publicly traded company. Comcast is trying to complete the spinoff in one year, effectively unwinding part of the NBCUniversal acquisition it completed in 2011.
The entities in the planned spinoff generated about $7 billion of revenue in the 12 months that ended September 30, 2024, Comcast said. But cable TV channels have become less lucrative in an industry that’s shifting to the streaming model, and the spinoff would let Comcast remove those assets from its earnings reports. Comcast’s total revenue in the 12-month period was about $123 billion.
Comcast President Mike Cavanagh said in the Q3 earnings call on October 31 that Comcast is “experiencing the effects of the transition in our video businesses and have been studying the best path forward for these assets.”
The spinoff company will be “comprised of a strong portfolio of NBCUniversal’s cable television networks, including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel along with complementary digital assets including Fandango and Rotten Tomatoes, GolfNow and Sports Engine,” Comcast said today.
Comcast is keeping the rest of NBCUniversal, including the Peacock streaming service and networks that provide key content for Peacock. Comcast said it will retain NBCUniversal’s “leading broadcast and streaming media properties, including NBC entertainment, sports, news and Bravo—which all power Peacock—along with Telemundo, the theme parks business and film and television studios.”
SpinCo
The new company doesn’t have a permanent name yet and is referred to as “SpinCo” in the Comcast press release. Comcast said SpinCo’s CEO will be Mark Lazarus, who is currently chairman of NBCUniversal Media Group. Anand Kini, the current CFO of NBCUniversal and EVP of Corporate Strategy at Comcast, will be CFO and COO at SpinCo.