WASHINGTON, D.C.: Comcast is restructuring its entertainment portfolio by spinning off several of its cable networks, a move reflecting the shift in audience preferences from traditional cable TV to streaming platforms.
The spin-off includes notable NBCUniversal networks such as USA, Oxygen, E!, SYFY, Golf Channel, CNBC, and MSNBC. The new company will also include additional assets like Fandango and Rotten Tomatoes.
Peacock, Comcast’s streaming platform, and Bravo, which contributes significantly to Peacock’s content, will remain with the parent company.
Mark Lazarus, the current chairman of NBCUniversal Media Group, will lead the new company as CEO. Anand Kini, NBCUniversal’s CFO, will serve as CFO and COO for the new entity. “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,” Lazarus said this week.
The assets to be spun off generated approximately US$7 billion in revenue for Comcast during the 12 months ending September 30, a fraction of the company’s total $123 billion revenue. Comcast envisions the new company having the financial flexibility to partner with or acquire complementary media businesses.
The spin-off is expected to be completed within a year, subject to financing, board approval, and regulatory review. Following the announcement, shares of Comcast, based in Philadelphia, rose one percent to $42.75.
The move comes as Comcast continues to prioritize streaming, theme parks, and other revenue streams over traditional cable. Its streaming service, Peacock, has seen significant growth, with paid subscribers increasing by three million, or 29 percent, to 36 million in the most recent quarter. Peacock’s revenue soared 82 percent to $1.5 billion, boosted by its successful coverage of the 2024 Paris Olympics.
Peacock streamed over 23 billion minutes of Olympic coverage, a 40 percent increase over all previous Summer and Winter Games combined. Comcast attributed this success to streaming all 329 medal events and more than 5,000 hours of coverage.
In its latest quarter, Comcast reported over $32 billion in revenue, bolstered by the box-office success of Despicable Me 4, which grossed over $1 billion worldwide. The company also plans to open its new Epic Universe theme park in Orlando in May next year.
