From CNBC: 2024-11-19 19:30:35

Comcast is moving forward with the spinoff of its cable network channels, with the separation expected to take about a year. The new entity will be led by Mark Lazarus and NBCUniversal’s CFO Anand Kini. Comcast CEO Brian Roberts will maintain a voting position in the company. The spinoff will be tax-free and the share structure will mirror that of Comcast’s.

The decision comes as millions of customers opt for streaming over traditional pay TV bundles. The spinoff will include networks like E!, Syfy, Golf Channel, USA, and Oxygen, while Bravo will remain with Comcast’s NBCUniversal due to its presence on Peacock. NBC and Peacock will also stay with Comcast.

The move follows Comcast’s announcement during its October earnings call that it was considering a split of the cable networks. Despite the impact of cord-cutting, traditional TV networks continue to be cash cows for media businesses. Comcast reported in October that third-quarter revenue for its media segment, mainly comprised of TV networks, was up nearly 37% to $8.23 billion, driven by the Olympics.

The spinoff will take roughly a year as the company navigates licensing agreements and determines the future relationship between MSNBC, CNBC, and NBC News. The Wall Street Journal first reported the spinoff. Comcast shares were up more than 2% in after-hours trading following the news.



Read more at CNBC: Comcast will announce the spinoff of cable networks Wednesday, CNBC source says