Comcast to Spin Off Cable TV Networks Amid "Changing Media Landscape"

Comcast announced its intent to create a new publicly traded company comprised of high-profile NBCUniversal cable television networks, including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel, through a tax-free spin-off.

Comcast says the independent company, “SpinCo,” will have “significant scale as a pure-play set of assets” and says the new company will provide “news, sports and entertainment with significant scale and resources,” according to a press release.

SpinCo’s brands will provide a content offering that will reach approximately 70 million U.S. households.

It will also include digital assets Fandango, Rotten Tomatoes, GolfNow, and Sports Engine.

The spinoff will no include NBC broadcast networks, nor will it include the streaming app, Peacock, or the Bravo channel

New company to be led by NBC media veterans

The new media company will be led by Mark Lazarus and Anand Kini. The pair come from media backgrounds as Lazarus is current chairman and Kini is CFO of NBC Universal.

The transaction is expected to take approximately one year.

“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.”

Comcast is positioning the move as a strategic play that will strengthen the brands.

“This transaction positions both SpinCo and NBCUniversal to play offense in a changing media landscape,” said Mike Cavanagh, President of Comcast. “Taken together, the entirety of NBCUniversal will be on a new growth trajectory, fueled by our world-class content, technology, IP, properties and talent – all working in concert with each other as an integrated media company.”