Comcast announced its intention to spin off a number of cable channels into a new publicly traded company.
The spin off is expected to be done in one year and includes channels like MSNBC, CNBC, E!, USA Network, and more. Mark Lazarus and Anand Kini will lead the new venture. Lazarus is the chairman of NBCU, which currently oversees the channels in question and Kini is the executive vice president of corporate strategy. The new company will be called SpinCo, according to a statement released this week.
Brian L. Roberts, chairman and CEO of Comcast, said the move is to set up “future growth” for these channels. The Wall Street Journal first reported the move, which was confirmed on Wednesday. The assets being spun off generated $7 billion for the year, ending September 30, but the shift is part of a broader shift as media companies look to streaming to and other avenues to create profit as traditional TV watching audiences shrink.
“When you look at our assets, talented management team and balance sheet strength, we are able to set these businesses up for future growth,” he said in a statement. “With significant financial resources from day one, SpinCo will be ideally positioned for success and highly attractive to investors, content creators, distributors and potential partners.”
Mike Cavanagh, President of Comcast, said the move will allow NBCU to “play offense in a changing media landscape.”
Check out the press release sent out
Comcast Corporation (NASDAQ: CMCSA) today announced its intent to create a new publicly traded company comprised of a strong portfolio of NBCUniversal’s cable television networks, including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel along with complementary digital assets including Fandango and Rotten Tomatoes, GolfNow and Sports Engine, through a tax-free spin-off. The well-capitalized independent company (“SpinCo”) will have significant scale as a pure-play set of assets anchored by leading news, sports and entertainment content.SpinCo will be an industry-leading news, sports and entertainment cable television business with a focused strategic direction. SpinCo’s stable of marquee brands will provide a diverse and differentiated content offering that will reach approximately 70 million U.S. households.“When you look at our assets, talented management team and balance sheet strength, we are able to set these businesses up for future growth,” said Brian L. Roberts, Chairman and CEO of Comcast. “With significant financial resources from day one, SpinCo will be ideally positioned for success and highly attractive to investors, content creators, distributors and potential partners.”The planned spin-off will also strategically position NBCUniversal with its leading broadcast and streaming media properties, including NBC entertainment, sports, news and Bravo – which all power Peacock – along with Telemundo, the theme parks business and film and television studios.
Watch above via MSNBC.