Comcast announced plans to spin off several of NBCUniversal’s cable networks, including USA Network, CNBC, and MSNBC, into a separate public company. The move reflects the ongoing shift in consumer preferences from traditional cable to streaming services.
The new company will also include Oxygen, E!, SYFY, and Golf Channel, as well as the movie ticketing platform Fandango and the Rotten Tomatoes movie rating site. Peacock and Bravo, key components of Comcast’s streaming strategy, will remain with the parent company.
Leadership and rationale for the spin-off
Mark Lazarus, the current chairman of NBCUniversal Media Group, will serve as the CEO of the new entity, with Anand Kini continuing as CFO and adding the role of COO. Lazarus highlighted the benefits of independence for the new company:
“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.”
The assets designated for the spin-off generated approximately $7 billion in revenue in the year ending September 30, compared to Comcast’s total revenue of $123 billion during the same period. Comcast believes the new entity will have the financial flexibility to acquire or partner with other complementary media businesses.
Timeline and regulatory considerations
Comcast plans to complete the spin-off within a year, which is pending board and regulatory approval. Shares of Comcast rose 1% to $42.75 following the announcement.
Comcast’s focus on streaming and diversified revenue streams
In recent years, Comcast has prioritized streaming and other business segments, such as movie studios, theme parks, and home wireless and internet services. Peacock, Comcast’s flagship streaming platform, added 3 million paid subscribers in the most recent quarter, bringing its total to 36 million—a 29% increase. Revenue from Peacock surged 82% to $1.5 billion during the same period.
Peacock gained momentum during the 2024 Paris Olympic Games, streaming all 329 medal events and over 5,000 hours of coverage. Viewers streamed over 23 billion minutes of Olympic content on Peacock, a 40% increase compared to all previous Summer and Winter Olympics combined.
Recent successes and upcoming ventures
Comcast reported more than $32 billion in revenue and $1.12 earnings per share in its most recent quarter, buoyed by the box-office success of “Despicable Me 4,” which grossed over $1 billion globally. Looking ahead, the company plans to open its new Epic Universe theme park in Orlando in May 2025.
The spin-off underscores Comcast’s evolving strategy to adapt to a rapidly changing media landscape, positioning its cable networks for success as a standalone entity while doubling down on its growth in streaming and other entertainment sectors.
