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Comcast Greenlights $7 Billion Spinoff of NBCUniversal Cable Channels
New venture will house channels like E!, USA and MSNBC; company to announce several leadership changes
By
Amol Sharma
Updated Nov. 19, 2024 6:41 pm ET
Comcast is expected to announce Wednesday that it is moving forward with a plan to spin off its NBCUniversal cable TV networks, according to people familiar with the situation, acknowledging that it will be better off without a business that was once its crown jewel.
The company, which last month said it was studying the idea, will separate off entertainment and news channels including MSNBC, CNBC, USA, Oxygen, E!, Syfy and Golf Channel. Those assets generated about $7 billion in revenue in the 12 months ended Sept. 30.
Bravo, known for reality TV programming such as the “Real Housewives,” will stay in the mother ship, along with the Peacock streaming service and the NBC broadcast network, the people said.
Comcast is betting that NBCUniversal’s remaining assets—including in broadcast TV, sports, movies and theme parks—will be better positioned for growth, and that its strong balance sheet can absorb the loss of still-healthy profits from cable networks.
The new cable venture would likely need greater scale to thrive, media executives say. Comcast’s leadership sees the potential for it to consolidate other networks across the dial over time.
When Comcast gained control of NBCUniversal in 2011, its cable networks were considered among the most attractive assets. Channels such as E!, known for red-carpet coverage, and women-focused Oxygen, seemed to have plenty of potential in the growing U.S. cable market.
However, years of cord-cutting have taken a heavy toll on subscribers and viewership. Every major media company has slashed costs in these networks, but Comcast is the first to hive off nearly the entire business into a separate firm.
The transaction, structured as a tax-free spinoff to Comcast shareholders, is expected to take around a year to complete. The new cable venture will have an ownership structure that mirrors Comcast’s, with Comcast Chairman and CEO Brian Roberts holding a one-third voting stake. Roberts won’t be on the board of the new venture.
Mark Lazarus, who is currently the chairman of NBCUniversal’s media group, with oversight of TV and streaming platforms, will be named chief executive of the new venture. Anand Kini, who has served as chief financial officer of NBCUniversal, will be the CFO and operating chief of the new company.
In anticipation of the spinoff, Comcast President Mike Cavanagh is making several other leadership changes, effective immediately.
Chief Content Officer Donna Langley will become chairman of NBCUniversal Entertainment and Studios, gaining streamlined authority to greenlight productions and more financial visibility and control over content spending, the people familiar with the situation said. She will also oversee marketing across the entertainment portfolio.
Matt Strauss, a Comcast veteran who heads the direct-to-consumer business, will be named chairman of NBCUniversal Media Group, with control over areas such as sports, ad sales and distribution. Langley and Strauss will share ownership of key areas of the business.
Cesar Conde will remain chairman of NBCUniversal News Group, overseeing NBC News, Telemundo and local TV stations. He will also advise the company on growth opportunities. Executive Vice President Adam Miller, whose portfolio includes operations, technology, communications and human resources, will become NBCUniversal’s COO.
Write to Amol Sharma at
Amol.Sharma@wsj.com
