Comcast today announced its intent to create a new publicly traded company comprised of a portfolio of NBCUniversal’s cable networks, including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY, and Golf Channel, along with digital assets, including Fandango and Rotten Tomatoes, GolfNow, and Sports Engine, through a tax-free spin-off.
Comcast says, “The well-capitalized independent company (‘SpinCo’) will have significant scale as a pure-play set of assets anchored by leading news, sports and entertainment content.”
SpinCo will be a news, sports, and entertainment cable television business with a focused strategic direction. SpinCo’s brands will provide a diverse and differentiated content offering that will reach approximately 70 million U.S. households.
“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.”
The planned spin-off will also position NBCUniversal with its leading broadcast and streaming media properties, including NBC entertainment, sports, news, and Bravo – which all power Peacock – along with Telemundo, the theme parks business, and film and television studios.
“This transaction positions both SpinCo and NBCUniversal to play offense in a changing media landscape,” said Mike Cavanagh, President of Comcast. “Taken together, the entirety of NBCUniversal will be on a new growth trajectory, fueled by our world-class content, technology, IP, properties and talent – all working in concert with each other as an integrated media company.”
Mark Lazarus, current Chairman of NBCUniversal Media Group, will serve as SpinCo’s Chief Executive Officer, and Anand Kini, current Chief Financial Officer of NBCUniversal and EVP of Corporate Strategy at Comcast, as its Chief Financial Officer and Chief Operating Officer. Together, they will lead the development of an independent strategy while also establishing SpinCo as a potential partner and acquirer of other complementary media businesses.
“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 Mark 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.”
Over the last twelve months ended September 30, 2024, SpinCo generated approximately $7 billion in revenue. SpinCo will have the same dual-class share structure as Comcast.
Comcast is targeting to complete the spin-off in approximately one year, subject to the satisfaction of customary conditions, including obtaining final approval from the Comcast Board of Directors, satisfactory completion of SpinCo financing, receipt of tax opinions, and receipt of any regulatory approvals.
Mirko Parlevliet has been reporting on the entertainment industry since 1998 and founded Vital Thrills to provide the latest news on streaming, movies, and TV shows. He previously created the websites ComingSoon, SuperHeroHype, and ShockTillYouDrop.