Comcast is expected to spin off its cable channels, which include CNBC, MSNBC, Syfy, Oxygen, Golf Channel, E!, and USA. The company is expected to make the official announcement on November 20. As per the Wall Street Journal, this will be a tax-free spin-off for Comcast shareholders that will be completed in a year.
Comcast CEO and chairman, Brian Roberts, will hold a one-third voting stake in the venture’s ownership structure. However, he won’t serve as the board member of the newly spun-off entities.
Mark Lazarus, chairman of NBCUniversal Media Group, is set to be CEO of the new venture, while Anand Kini, NBCU’s chief financial officer, will take on the roles of CFO and COO for the spun-off company.
Comcast to Offload Cable Channels in Strategic Shift
Comcast’s spin-off plan has been in discussion since the announcement of its third-quarter earnings call in October. NBCUniversal Entertainment and Studio, has also done major shifts in the upper management including Donna Langley, currently Chief Content Officer, who will step into the role of Chairman of NBCUniversal Entertainment and Studios, giving her greater control over content production and budgets.
Matt Strauss, head of direct-to-consumer, will take over as Chairman of NBCUniversal Media Group, succeeding Mark Lazarus. Cesar Conde will continue as Chairman of NBCUniversal News Group, and Adam Miller, Executive Vice President, will become NBCU’s new Chief Operating Officer.
Comcast will keep back “The Real Housewives” streaming platforms, Bravo, Peacock, and NBC Broadcast Network.
Comcast President Mike Cavanagh said, “Like many of our peers in media, we are experiencing the effects of the transition in our video businesses and have been studying the best path forward for these assets.” He also said that Comcast is exploring whether creating a new well-capitalized company owned by shareholders and comprised of a strong portfolio will position them to take advantage of opportunities in the rapidly changing media landscape. Cavanagh did not disclose specifications as the company has yet to make an official announcement.
Comcast Stock Rises Amid Spin-Off Anticipation
On November 19, Comcast’s shares gained because of the expected spin-off of cable channels. All cable channels of Comcast made an earning of $7 billion in the last three quarters of the year. Shares of the company almost climbed by 3% in extended trading after news of the expected spin-off.
As Comcast moves forward with its planned spin-off of cable channels, the company is positioning itself to adapt to the evolving media landscape. The restructuring aims to unlock value for shareholders and streamline operations, with key leadership changes that will help in future growth. While details of the spin-off remain to be fully disclosed, the positive market reaction and the company’s strong earnings reflect investor’s confidence about the strategic shift.
