Comcast has formally announced plans to spin out most of its linear cable networks (excluding Bravo) to shareholders of a separate company, which President Mike Kavanaugh said would put NBCUniversal as a whole “on a new growth trajectory.” I’ll ride.”
Deadline reported yesterday that NBCUniversal Media Group’s Mark Lazarus and CFO Anand Kini will lead the new company, and Donna Langley will become chairman of NBCUniversal Entertainment & Studios. Details were reported.
“Together, the companies will lead the development of independent strategies while establishing SpinCo as a potential partner and acquirer for other complementary media businesses,” Comcast said today.
“As an independent company with these outstanding assets, we are better positioned to serve our audiences and advance shareholder returns in this incredibly dynamic media environment across news, sports and entertainment. You will be able to stand,” Lazarus said.
“We believe there is a real opportunity to invest in and build additional scale and are excited about the growth opportunities unlocked by this transition. Our financial strength supports the growth of these businesses. It also provides the ability to achieve an attractive capital return policy.”
Comcast hinted at a possible split in late October, with Cavanagh saying it was “the best path forward for these assets” as media businesses transition from linear to streaming. The cable assets being separated include cable channels MSNBC, CNBC, E!, Syfy, Golf Channel, Oxygen, USA and digital assets. For now, they will be incorporated into a new company called Spin Co.
Bravo, NBC and streamer Peacock will remain within Comcast.
The decision comes as streaming is transforming entertainment and eroding the reach of terrestrial television. Paramount Global and Warner Bros. Discovery took massive multibillion-dollar hits this summer to value their cable businesses.
Balancing a declining but still cash-guzzling business with new streaming obligations has become a top consideration for media companies.
Comcast believes clustering them outside of its core broadband, theme parks and studio businesses is the best way to give the media giant some choice. This is one of the first dramatic moves by a major media company that doesn’t result in a merger like Paramount’s sale to Skydance.
The announced spin-off is a complex process that must be completed by the end of 2025.
“Given our assets, talented management team, and balance sheet strength, we are confident that these businesses will be “We can set ourselves up for growth.” “With significant capital from day one, SpinCo is ideally positioned for success and will be highly attractive to investors, content creators, distributors and potential partners.”
SpinCo generated approximately $7 billion in revenue in the past 12 months ending Sept. 30, Comcast said. SpinCo will have the same dual-class stock structure as Comcast. As an independent company, SpinCo will be well-positioned to achieve long-term growth and create value for its stakeholders. ”
