Comcast is officially cutting the cord on most of its cable networks.
The company announced a plan Wednesday that will offload the bulk of NBCUniversal‘s financially challenged cable portfolio — excluding Bravo — into a new entity owned by Comcast shareholders. The thinking is the new company will be positioned to acquire other media and digital properties, to gain greater scale in an increasingly streaming-focused landscape. Alternatively, the separation of the NBCU cable group would make it easier to sell the business.
The spin-off company will house MSNBC, CNBC, USA Network, Oxygen, E!, Syfy and Golf Channel. In addition, the company will include digital assets including Fandango and Rotten Tomatoes, GolfNow and Sports Engine. Comcast said it is structured as a tax-free spin-off.
The new NBCU cable TV company — currently dubbed “SpinCo” — will be led by CEO Mark Lazarus, who has served as chairman of NBCUniversal Media Group since July 2023, overseeing the company’s TV and streaming operations.
Post-spin, NBCUniversal will comprise the NBC broadcast network and stations, the Peacock streaming service, Bravo (the reality TV powerhouse seen as a key to Peacock’s success), NBC News Group, NBC Sports, Telemundo, the Universal theme parks and resorts, and NBCU’s film and television studios.
Comcast expects the spin-off to close within one year, contingent on obtaining final approval from the Comcast board of directors, “satisfactory completion of SpinCo financing, receipt of tax opinions and receipt of any regulatory approvals,” the company said.
“When you look at our assets, talented management team and balance sheet strength, we are able to set these businesses up for future growth,” Comcast chairman and CEO Brian Roberts said in a statement. “With significant financial resources from day one, SpinCo will be ideally positioned for success and highly attractive to investors, content creators, distributors and potential partners.”
Yet to be hashed out are some nitty-gritty details. Those include how MSNBC will be separated from NBC News Group, led by Cesar Conde, and how NBCU will split up its advertising-sales division, which currently spans its full TV and streaming lineup.
Comcast said that while SpinCo will operate as an independent business, it will enter into a “transition services agreement” with NBCUniversal to allow SpinCo “to operate seamlessly from Day One,” Comcast said.
News of Comcast’s cable spin-off broke Tuesday, coming less than a month after the company told investors on Oct. 31 it was exploring the scenario. Comcast is not holding a conference call with analysts or press to discuss the planned transaction.
“This transaction positions both SpinCo and NBCUniversal to play offense in a changing media landscape,” said Mike Cavanagh, president of Comcast, in a statement. “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.”
Over the 12 months ended Sept. 30, 2024, SpinCo generated approximately $7 billion in revenue, according to Comcast. SpinCo will have the same dual-class share structure as Comcast.