Comcast announced plans on Wednesday to spin off a significant portion of its NBCUniversal cable TV networks, including MSNBC, CNBC, USA Network, and Syfy, into a new publicly-traded company.
The move reflects the company's strategy to pivot towards growth in the streaming era, focusing on its Peacock platform and other core assets.
The spin-off, expected to be tax-free and completed within a year, marks a strategic shift for Comcast as it adapts to the decline of traditional cable television.
The independent company, dubbed “SpinCo”, will have “significant scale as a pure-play set of assets anchored by leading news, sports and entertainment content”.
“This transaction positions both SpinCo and NBCUniversal to play offense in a changing media landscape,” said Mike Cavanagh, President of Comcast. “Taken together, the entirety of NBCUniversal will be on a new growth trajectory, fueled by our world-class content, technology, IP, properties and talent – all working in concert with each other as an integrated media company.”
The new entity, comprising cable networks that generated US$7 billion in annual revenue, will target private equity firms or media conglomerates as potential buyers.
Comcast will retain its NBC broadcast network, sports and news divisions, Bravo, film and television studios, and its thriving theme park business, all of which fuel growth for Peacock.
Industry analysts suggest the spin-off could position Comcast for further consolidation, potentially with companies like Charter Communications. By offloading less lucrative cable channels, Comcast could avoid regulatory hurdles in future mergers.
Streaming’s dominance over traditional pay TV has driven the decline in cable networks, which still reach 70 million U.S. households.
Comcast CEO Brian Roberts, known for his transformative acquisitions, now oversees a company grappling with industry-wide shifts. The new cable-focused entity will be led by NBCUniversal Media Group Chairman Mark Lazarus as CEO, with Anand Kini as operating chief and finance head.
Meanwhile, Donna Langley will expand her role as Chairman of NBCUniversal Entertainment & Studios, overseeing all entertainment programming. Matt Strauss will lead NBCUniversal Media Group, managing streaming operations, NBC Sports, and ad sales.