Comcast confirms plan to spin off cable TV networks

The new entity – dubbed SpinCo - will house channels such as USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel along with digital assets including Fandango and Rotten Tomatoes, GolfNow and Sports Engine.

Comcast will keep the NBC broadcast television network, the Bravo and Telemundo brands, its film and television studios, and its theme parks, as well as its Peacock streaming service.

‘SpinCo’ will be led by Mark Lazarus, current Chairman of NBCUniversal Media Group. Comcast said the new entity’s assets will reach approximately 70m US households, and that SpinCo’s assets had generated approximately $7bn in revenue over the past year.

News that Comcast was planning to spin off its cable networks emerged earlier this week.

Comcast’s cable networks business has been in decline as consumers cancel their cable TV subscriptions and subscribe to streaming services. Many analysts argue that Comcast’s ongoing ownership of cable networks has held back its share price.

“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.”

“We see a real opportunity to invest and build additional scale and I'm excited about the growth opportunities this transition will unlock," Lazarus said.

Comcast said the aim was to complete the plan in about a year.