Comcast to Spin off MSNBC, CNBC and Cable Channels

Comcast is ready to spin off most of its cable television networks, including MSNBC and CNBC, into a separate publicly traded company, as per executives with knowledge of the plan.

The spinoff is awaited to be officially declared on Wednesday. The Wall Street Journal first reported this news announcement on Tuesday evening. After that, a few channels such as USA, Oxygen, E!, Syfy and Golf Channel reported.

Additionally, Comcast's NBCUniversal division is retaining control of Bravo, the NBC broadcast network, the Peacock streaming service, as well as all its other assets, including NBC Sports and the Universal theme parks.

The separate cable channel company will have the same kind of ownership pattern like Comcast; however, it will have its own management team, headed by NBCUniversal Media Group chairman Mark Lazarus, and he will take charge as CEO of the new venture.

Furthermore, audiences may think of the spinoff as an attempt to shed cable channels that may affect declining in value in the streaming time; the channels still contribute strong profits to Comcast’s bottom line. The company’s executives are anticipated to depict the spinoff as a growth opportunity for an industry in transition, with an eye towards obtaining other channels in the future. 

The standalone cable network venture could also grab buyers and sellers' interest. Wall Street analysts are forecasting further consolidation of main media companies in the years ahead.

Comcast president Mike Cavanaugh presaged the spinoff throughout a conference call with investors last month. He said the company was going to study whether it was a good idea to create “a new well-capitalized company that would go to our shareholders” comprising “our cable portfolio networks.”

The study will not take too long.

Craig Moffett, an analyst with MoffettNathanson stated “investors have yearned for exactly this, or at least something close to it, for years.”

In particular, the spinoff will split MSNBC and CNBC, two profitable parts of the NBCUniversal News Group, away from the main news assembling operation of NBC News. In recent years NBC has attempted to bring its broadcast and cable news operations jointly, but now they may be separate.

Executives are anticipated to address their goal for how the news breakup will work on Wednesday.