US telco giant Comcast has announced plans to spin off a number of its cable TV channels into a publicly traded company.
The independent company, named SpinCo, will be made up of NBCUniversal's portfolio of cable TV channels including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY, Golf Channel, plus Fandango and Rotten Tomatoes, GolfNow, and Sports Engine.
Collectively the channels generated a revenue of $7 billion for Comcast in the year leading up to September 30, 2024.
The announcement comes weeks after Comcast president Mike Cavanagh suggested the company was considering a major restructuring of its media assets.
“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, this week.
“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.”
According to the company, the move to spin off the cable TV assets will enable it to invest in its strategic core growth businesses across its content & experiences and connectivity & platforms businesses, which include residential broadband, wireless, and business services.
Mark Lazarus, the current chairman of NBCUniversal Media Group, will serve as SpinCo's chief executive officer, while Anand Kini, will serve as chief financial officer and chief operating officer. Kini is currently chief financial officer of NBCUniversal and EVP of corporate strategy at Comcast.
The duo will lead the development of an independent strategy, while also "establishing SpinCo as a potential partner and acquirer of other complementary media businesses," noted Comcast.
“As a standalone company with these outstanding assets, we will be better positioned to serve our audiences and drive shareholder returns in this incredibly dynamic media environment across news, sports, and entertainment,” said Lazarus.
“We see a real opportunity to invest and build additional scale and I'm excited about the growth opportunities this transition will unlock. Our financial strength will also provide capacity for an attractive capital return policy while allowing for investment in the growth of these businesses.”
Comcast said it aims to complete the spin-off in approximately one year, subject to the satisfaction of customary conditions. This it said, includes obtaining final approval from the Comcast Board of Directors, satisfactory completion of SpinCo financing, receipt of tax opinions, and receipt of any regulatory approvals.
