Comcast is set to announce a groundbreaking $7 billion spin-off of its NBCUniversal cable TV networks, marking a pivotal shift in its growth strategy amid the changing media landscape, The Wall Street Journal reported.
Comcast Corp. is moving forward with plans to spin off its NBCUniversal cable TV networks, a move aimed at restructuring its portfolio to adapt to the evolving media environment. The $7 billion venture, expected to be tax-free, will house a range of entertainment and news channels, including MSNBC, CNBC, USA, Oxygen, E!, Syfy, and the Golf Channel.
The announcement, slated for Wednesday, reflects Comcast’s strategy to refocus its resources on broadcast TV, streaming, sports, and other high-growth areas. Although cable networks generate steady profits, cord-cutting trends have significantly impacted subscriber bases and viewership, diminishing their once-dominant status.
Key NBCUniversal assets, such as Bravo and its popular reality TV programming, will remain with Comcast, along with the NBC broadcast network and the Peacock streaming service. These entities are vital to the company’s future growth. The cable networks being spun off earned approximately $7 billion in revenue in the 12 months ending Sept. 30.
Mark Lazarus, chair of NBCUniversal’s media group, will serve as CEO of the new cable-focused venture. Anand Kini, NBCUniversal’s chief financial officer, will serve as CFO and operating chief for the spin-off. Comcast Chair and CEO Brian Roberts will hold a one-third voting stake in the new entity but will not join its board.
The move reflects Comcast’s belief that the cable venture will require greater scale to remain competitive. Media analysts suggest the new company may seek consolidation opportunities with other networks to expand its reach and profitability.
The spin-off follows a series of leadership changes across Comcast and NBCUniversal. Donna Langley, currently the Chief Content Officer, will become chair of NBCUniversal Entertainment and Studios. Her role will include overseeing production greenlights, marketing, and managing content budgets.
Matt Strauss, head of Comcast’s direct-to-consumer business, will become chair of NBCUniversal Media Group and oversee sports, ad sales, and distribution. Langley and Strauss will share responsibilities in key operational areas.
Cesar Conde will continue as chair of NBCUniversal News Group, which oversees NBC News, Telemundo, and local TV stations. He will also advise on growth opportunities. Additionally, an executive vice president, Adam Miller, will be promoted to COO of NBCUniversal, with responsibilities spanning operations, technology, and communications.
The decision to spin off the cable networks marks a significant moment for Comcast, which acquired NBCUniversal in 2011. At the time, channels such as E! and Oxygen were among the company’s most valuable assets in a thriving cable market. However, with the rise of streaming and the decline of traditional cable TV, Comcast is prioritizing investments in areas with greater growth potential.
The spin-off is expected to take about a year to complete.
© 2024 Newsmax. All rights reserved.
Comments