Comcast to spin off cable network channels into a new entity

Comcast is reportedly planning to spin off its cable network channels, a process expected to take about a year. The announcement could come as soon as Wednesday.

The new company will have networks like E!, Syfy, Golf Channel, USA, and Oxygen. Bravo will stay with Comcast's NBCUniversal as it's closely related to the Peacock streaming.

Mark Lazarus, currently Chairman of NBCUniversal’s Media Group, will lead the new entity as CEO. Anand Kini, NBCUniversal’s Chief Financial Officer, will take on the role of CFO and COO. Comcast CEO Brian Roberts will retain a voting position but will not serve on the board or as an officer.

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The spinoff aims to provide flexibility for the cable networks, allowing them to explore mergers, private equity deals, or other strategic moves. Comcast plans to maintain the new entity's tax-free status, with a share structure mirroring its own.

This decision comes as traditional pay-tv networks face challenges from the growing popularity of streaming platforms. Comcast has been investing heavily in its streaming service, Peacock, as part of this industry shift.

Despite declining pay-tv subscriptions, traditional networks remain profitable. Comcast’s media segment reported $8.23 billion in revenue for Q3 2024, bolstered by the Olympics. Excluding the Games, the segment still saw 5% revenue growth.

The separation process will involve reviewing licensing agreements and determining how MSNBC and CNBC will align with NBC News. Formal discussions on these matters are yet to take place.

Comcast shares rose over 2 per centin after-hours trading following the news.