Comcast is making a big move by spinning off its cable network channels, according to sources familiar with the matter. This separation process is expected to take around a year, with an official announcement possibly coming as soon as Wednesday.
The newly formed entity will be headed by Mark Lazarus, who is currently the chairman of NBCUniversal’s media group. Anand Kini, the Chief Financial Officer of NBCUniversal, will take on the roles of CFO and operating chief in the new entity. Brian Roberts, Chairman and CEO of Comcast, will still hold a voting position in the company but will not serve as an officer or be on the board of directors.
The decision to separate the cable networks will provide more flexibility for potential mergers with other networks or even the possibility of being sold to private equity. The spinoff will be tax-free, and the share structure of the new entity will be similar to that of Comcast.
At NBCUniversal, Donna Langley will become the chairman of NBCUniversal Entertainment and Studios, while Matt Strauss will oversee sports, ad sales, and distribution as chairman of NBCUniversal Media Group. Cesar Conde will continue as the chairman of NBCUniversal News Group, and Adam Miller will take on the role of Chief Operating Officer at NBCUniversal.
During its quarterly earnings call in October, Comcast had hinted at the possibility of splitting the cable networks. The company sees this as an opportunity to create a new, well-capitalized company with a strong portfolio of cable networks owned by shareholders.
As more customers move away from traditional pay TV towards streaming services, Comcast has been focusing on strengthening NBCUniversal’s streaming platform, Peacock. This decision to spin off the cable networks comes at a time when the media landscape is rapidly evolving.
The networks involved in the spinoff include E!, Syfy, Golf Channel, USA, and Oxygen. Bravo, on the other hand, will remain under Comcast’s NBCUniversal since its content is prominently featured on Peacock.
While cord-cutting has impacted the industry, traditional TV networks remain profitable for media companies. Comcast reported a significant increase in revenue for its media segment in the third quarter, largely due to the Olympics. The company is now navigating the process of determining licensing agreements and addressing potential collaborations between MSNBC, CNBC, and NBC News.
Formal discussions between CNBC, MSNBC, and NBC News have not yet taken place, but the spinoff is expected to proceed smoothly over the coming year. This strategic move by Comcast reflects the changing dynamics of the media industry and the company’s commitment to adapting to the evolving landscape.
