Comcast announced a plan Wednesday to spin off most of its cable television networks into a separate publicly traded company.
The new company will include the USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and the Golf Channel. Comcast will retain key NBCUniversal assets, including the NBC broadcast network, including NBC News; NBC Sports; the streaming service Peacock; and the cable channel Bravo.
“The transaction will be structured as a tax-free spin to existing shareholders,” Comcast President Mike Cavanagh said in an internal memo. “While we don’t have a precise timetable for completing the transition, we are estimating that it will take approximately a year.”
Comcast owns NBCUniversal, the parent company of NBC News.
The move comes as the traditional cable television bundle faces stiff economic headwinds, most notably the rise of cord-cutting and the shift to streaming alternatives. Comcast’s cable portfolio still contributes to its financial bottom line and helps expand its cultural footprint.
“The well-capitalized, independent company will be positioned to lead in the changing landscape for cable networks given the strength of its portfolio and the quality and focus of its management team,” Cavanagh said.
The new company, known for the time being as SpinCo, “will have significant cash flow, a strong balance sheet, and the financial flexibility to pursue growth opportunities, both organically and potentially through acquisitions,” Cavanagh added.
Cavanagh said the new company will be led by Mark Lazarus, the current chairman of NBCUniversal’s media group. Anand Kini, NBCUniversal’s chief financial officer, will serve as the CFO and chief operating officer.
The plan was first reported by The Wall Street Journal and then confirmed to NBC News on Tuesday by two people familiar with the matter.
Cavanagh announced during a quarterly earnings call in late October that the corporation was considering cleaving off some of its cable networks.
He described the venture as “a new, well-capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks.”
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