A number of cable television assets will anchor a new, publicly traded company called SpinCo.
Comcast Corp. is spinning off a new publicly traded company that will include a portfolio of its NBCUniversal cable television networks, including USA Network, CNBC, and MSNBC.
On Nov. 20, the Philadelphia-based media company announced that it intends to create a new company called “SpinCo” that will own USA, CNBC, MSNBC, Oxygen, E!, SYFY, and Golf Channel. The new company will also include complementary digital assets including Fandango, Rotten Tomatoes, GolfNow, and Sports Engine.
The announcement followed commentary from Comcast President Mike Cavanaugh during the company’s third-quarter earnings call. According to the company’s official transcript, Cavanaugh said Comcast was “exploring” a move regarding its cable networks.
In the announcement, Comcast said SpinCo’s news, sports, and entertainment assets had already reached 70 million U.S. households.
Comcast shares, however, fell on the news. After closing at $43.37 per share on Nov. 19, Comcast’s stock fell as low as $42.21 per share on Wednesday morning. As of about midday on Nov. 20, shares are trading at about $42.40 per share.
According to Comcast’s statement, SpinCo will be led by Mark Lazarus, the current chairman of NBC Universal Media Group. Lazarus will take over as CEO of SpinCo. In addition, Anand Kini, the chief financial officer (CFO) of NBCUniversal and executive vice president of corporate strategy at Comcast, will serve as SpinCo’s CFO and chief operating officer.
The statement did not say how soon the separation would occur, but it did say SpinCo would exist with “financial flexibility to pursue growth opportunities.”
Comcast said the SpinCo assets—had they been a separate company at the time—would have made about $7 billion in revenue in 2024.
The media company said it will “continue to invest in its strategic core growth businesses” once its SpinCo assets depart. That will leave Comcast with its residential broadband business, wireless, business services, streaming, studio, and theme park assets. The move is not expected to affect Comcast’s debts or credit rating.
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