Comcast

Comcast made the formal announcement on Wednesday that it is spinning off the majority of its cable assets into a stand-alone public company. It expects the transaction to close in approximately one year, subject to customary conditions and regulatory approvals.

The new venture will house NBCUniversal cable networks including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel, along with complementary digital assets including Fandango and Rotten Tomatoes, GolfNow, and Sports Engine.

Comcast said the new “SpinCo” entity’s assets will reach approximately 70m US households, adding that over the last 12 months ended September 30 SpinCo generated approximately $7bn in revenue. The entity will have the same dual-class share structure as Comcast.

CEO Mark Lazarus, the current chairman of NBCUniversal Media Group, and CFO and COO Anand Kini, the current CFO of NBCUniversal and EVP of corporate strategy at Comcast, will lead the new entity and position it as potential partner and buyer of complementary media businesses.

NBCUniversal with retain the Universal film and television studios, theme parks, NBC entertainment, sports, news and Bravo –all key programming drivers at the streaming platform Peacock – and Telemundo.

Langley, who most recently served as chairman, NBCUniversal Studio Group and Chief Content Officer, will become chairman, NBCUniversal Studios & Entertainment. Her expanded remit means she has greenlight authority across NBCUniversal and full oversight of all entertainment programming and marketing across Peacock, Bravo, and NBC – including primetime and late night.

The British executive will continue to oversee the global creative strategy, business operations, production, acquisitions, marketing, and distribution for Universal’s film and television studios. Langley was chairman of the Universal Filmed Entertainment Group for close to 10 years and is the architect of the studio’s successful run, including smash hits Oppenheimer, which won seven Oscars earlier this year including best picture, and The Super Mario Bros. Movie. On Friday the studio releases the first instalment in its two-part Broadway adaptation Wicked starring Cynthia Erivo and Ariana Grande, directed by Jon Chu.

Matt Strauss, who was appointed chairman, direct-to-consumer and international in August 2020, will become chairman of NBCUniversal Media Group. He will continue to lead direct-to-consumer, including Peacock, international networks, and global streaming, and takes on responsibility for NBC Sports, advertising sales, content distribution, decision sciences & research, and NBC broadcast affiliate relations.

Lazarus said of the spin-off, “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.”

Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are serving as financial advisors to Comcast, and Davis Polk & Wardwell LLP is serving as legal counsel.

Comcast stock climbed slightly in early trading on Wednesday and stood at $42.61.

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