Comcast separates its cable television business.
The NBCUniversal channels will be grouped under a new company.
Comcast has decided to separate from its television division, NBCUniversal, due to the decline of the cable television customer market in an era marked by cord-cutting and the popularity of platforms like TikTok. This major media conglomerate announced on Wednesday its intention to spin off most of its cable channels, such as CNBC, MSNBC, Universal Kids, USA Network, E!, Oxygen, Golf Channel, and Syfy, transferring them to a new company that has not yet been given a definitive name, although it has been provisionally referred to as “SpinCo.”
In this restructuring, Comcast will retain management of other popular assets like Bravo and the streaming platform Peacock, which will remain part of its NBC television business. The new company will be led by Mark Lazarus, president of NBCUniversal, while Anand Kini, NBCUniversal's chief financial officer, will serve as the financial and operational leader. Non-cable television-related services, including Fandango, Rotten Tomatoes, GolfNow, and Sports Engine, will also be moved to this new entity.
The complete separation is expected to take about a year. Comcast's president, Mike Cavanagh, commented that this transaction will position both SpinCo and NBCUniversal to adapt to a transforming media landscape. According to Cavanagh, the integration of all NBCUniversal units will allow the company to embark on a new growth path driven by its content, technology, intellectual property, and talent.
The assets being transferred to this new company generated $7 billion in revenue between September 2023 and 2024. Notably, Comcast invested nearly $30 billion in acquiring NBCU in 2013. The decision to spin off its cable networks comes after Cavanagh mentioned in October that the formation of an independent entity for these channels was being considered.