Comcast, the media giant behind household names like “Saturday Night Live” and “The Office,” revealed plans on Wednesday to spin off a considerable portion of its network portfolio into a separate entity. Some of the biggest names in television – including MSNBC, CNBC, and the USA Network – are included in this unexpected shift.
This is not merely a routine corporate restructuring. The newly formed entity, momentarily known as “SpinCo,” will be responsible for channels that reach over 70 million homes in America and generate an annual revenue of around $7 billion.
The separation extends beyond news networks. Entertainment channels like USA, Oxygen, E!, SYFY, and the Golf Channel will also relocate to the new company. Additionally, popular websites such as Fandango and Rotten Tomatoes, where millions of people check movie reviews and purchase tickets, will be part of the departure.
The newly formed media giant will be led by Mark Lazarus, current chairman of NBCUniversal Media Group, who will take on the role of CEO. Anand Kini will manage the financial and operational aspects as both CFO and COO.
The existing NBCUniversal will maintain ownership of several key assets, including the Peacock streaming service, NBC’s broadcast network, sports division, news operation, and the Bravo channel. It will also retain its theme parks and film studios.
This corporate maneuver has sparked a significant leadership reshuffling. Donna Langley is set to become chairperson of entertainment and studios, while Matt Strauss will assume the role of chairman of NBCUniversal Media Group, overseeing Direct-To-Consumer, International Networks, NBC Sports, among other business operations. Cesar Conde will continue to lead the NBCUniversal News Group.
This strategic move signals a larger trend – the shift from traditional cable TV to streaming services. Despite SpinCo’s robust balance sheet and the freedom to pursue independent deals, it faces a media environment where cable subscribers are increasingly opting for streaming services.
Although Comcast’s chairman Brian Roberts is parting with some assets, he will retain a third of the voting power in the new company. The entire separation process is expected to take about a year, subject to regulatory approvals and other standard procedures.
For Comcast, this corporate division is anticipated to enhance revenue growth without accumulating additional debt. The newly formed company will have substantial financial resources and the flexibility to pursue potential deals in the ever-evolving media landscape.
