Comcast, the media conglomerate behind hit TV shows such as “Saturday Night Live” and “The Office,” has announced its intention to split its network family. Some of the biggest names in television, including MSNBC, CNBC, USA Network, and more, are set to be spun off into a separate entity.
This move is more than a simple corporate restructure. The newly formed company, currently named “SpinCo,” will take command of channels reaching 70 million households across America and generating an annual revenue of $7 billion.
On top of news networks, entertainment channels including USA, Oxygen, E!, SYFY, and the Golf Channel are also set to move to the new company. Even popular websites Fandango and Rotten Tomatoes, the go-to sites for millions of film enthusiasts, will be part of the movement.
The individual appointed to head this media juggernaut is Mark Lazarus, currently serving as the chairman of NBCUniversal Media Group. He will assume the position of CEO. Anand Kini will be taking care of financial and operational matters as CFO and COO.
Despite this significant split, NBCUniversal will retain control of several key properties. It will continue to own the Peacock streaming service, NBC’s broadcast network, sports division, news operation, and the Bravo channel. The company’s theme parks and movie studios will also remain under its control.
This move has spurred a reshuffling of leadership roles. Donna Langley will be promoted to chairperson of entertainment and studios, while Matt Strauss will serve as chairman of NBCUniversal Media Group, supervising Direct-To-Consumer, International Networks, NBC Sports, and other business operations. Cesar Conde will continue to lead the NBCUniversal News Group.
The decision to spin off these assets mirrors a larger trend in the industry: the shift from traditional cable TV towards streaming services. As SpinCo prepares to launch with a strong financial footing and the liberty to pursue its own ventures, it will do so in a media environment where consumers are increasingly moving away from cable subscriptions.
Comcast’s chairman Brian Roberts will maintain a significant stake in the new entity, retaining one-third of the voting power. The entire separation process is projected to take around a year, subject to regulatory approvals and other standard procedures.
According to Comcast, this separation is anticipated to drive revenue growth without accruing additional debt. SpinCo will begin its operations with considerable financial resources and the flexibility to make strategic moves in a rapidly evolving media landscape.
