Comcast has confirmed plans to spin-off most of its cable television network portfolio, including CNBC, E!, Golf Channel, MSNBC, Oxygen, SYFY and USA Network. The new company will also be home to digital assets, including Fandango, GolfNow, Rotten Tomatoes, and Sports Engine.
Known as SpinCo, Comcast says the new company “will be an industry-leading news, sports and entertainment cable television business” with the combined reach of its products and services totaling 70 million U.S. households.
Mark Lazarus, current Chairman of NBCUniversal Media Group, will serve as SpinCo’s Chief Executive Officer.
“As a standalone company with these outstanding assets, we will be better positioned to serve our audiences and drive shareholder returns in this incredibly dynamic media environment across news, sports and entertainment,” said Lazarus.
What won’t be included under the spin-off company is NBC (including NBC News and NBC Sports) and Bravo. Peacock, which also isn’t included, appears to be the main reason for this, considering content from both of these networks contribute to Peacock’s library.
Telemundo, the theme parks business, and film and television studios are also remaining under the NBCUniversal (and Comcast) umbrella.
“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.”
From Comcast’s perspective, the separation of its networks into two companies opens up the possibility for additional decisions to be made at a later date, whether that’s outside investment or an outright sale of the assets. At the same time, the decision would seem to indicate that the networks and services Comcast is keeping direct control of are the ones the company sees as key to its core goals and ambitions going forward.
Assuming there are no regulatory issues, Comcast expects completion of the spin-off to take one year
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