In this article, Comcast has announced its plans to proceed with the spinoff of its cable network channels, which include CNBC, MSNBC, and E!. The decision follows earlier discussions by Comcast executives during the company’s quarterly earnings call about the potential split of the cable networks. Comcast President Mike Cavanagh had previously mentioned exploring the creation of a new, well-capitalized company owned by shareholders, consisting of their cable networks.
The cable networks set to be spun off also encompass Syfy, Golf Channel, USA, and Oxygen, as outlined in a company memo from Cavanagh. Bravo will remain under Comcast’s NBCUniversal and will continue to support the company’s streaming service, Peacock. Additionally, digital assets like Fandango, Rotten Tomatoes, GolfNow, and Sports Engine will be part of the separation.
The new entity, generating around $7 billion in revenue in the 12 months leading up to September 30, will be overseen by Mark Lazarus, the current chairman of NBCUniversal’s media group. Anand Kini, NBCUniversal’s chief financial officer, will serve as the CFO and operating chief of the new entity. The separation process is anticipated to take approximately a year.
Comcast Chairman and CEO Brian Roberts will retain economic and voting interests in the company, temporarily referred to as “SpinCo,” but will not hold a position as an officer or on the board of directors. The move to separate the cable networks from NBCUniversal is seen as a strategic decision to explore potential mergers with other networks or private equity sales, as well as to facilitate further investments in the networks, particularly the entertainment division.
The article also discusses the impact of cord-cutting on the traditional TV business, with Comcast reporting a loss of 365,000 TV customers in the third quarter. Despite challenges, traditional TV networks remain significant revenue sources for media companies. The article contrasts Comcast’s decision with Disney’s and Warner Bros. Discovery’s strategies regarding their TV networks.
The separation of Comcast’s cable networks from NBCUniversal is expected to provide flexibility for potential mergers, sales, or investments in the networks. The article also touches on the integration and separation of news businesses within NBCUniversal, potential licensing agreements between NBC and the new entity, and the future sharing of sports content between networks.
The article concludes with a letter addressed to colleagues, detailing the launch of the new company, SpinCo, and the reorganization of leadership within NBCUniversal. The letter outlines the strategic direction for both SpinCo and NBCUniversal, emphasizing growth opportunities and the alignment of businesses within NBCUniversal. The leadership team for NBCUniversal is also introduced, along with the plan for transitioning responsibilities and managing the launch of SpinCo.
