Comcast has announced plans to create a separate company to encompass its cable channels — including MSNBC and CNBC — with hopes of selling the assets.
The company will place CNBC, E!, Golf Channel, MSNBC, Oxygen, and USA Network into an independent company. Called SpinCo, it will include digital assets like Fandango and Rotten Tomatoes, too. It will focus on unloading the channels and outlets. The new entity will not include the company’s Bravo cable channel.
“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 Comcast Chairman and CEO Brian L. Roberts, Chairman. “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.”
Those channels and digital outlets generated $7 billion in revenue for the fiscal year, records show. However, many of the channels are expected to lose subscribers and advertising revenue, according to S&P Global Intelligence data.
NBCUniversal leaders Mark Lazarus and Anand Kini have been tabbed to oversee the new venture.
“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.”
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