Comcast to spin off NBCUniversal's Cable Networks and Digital Assets

Comcast Corporation has announced its intention to spin off a substantial portion of NBCUniversal’s cable television assets, including prominent networks such as USA Network, CNBC, MSNBC, Oxygen, E!, SYFY, and Golf Channel, along with valuable digital platforms like Fandango, Rotten Tomatoes, GolfNow, and Sports Engine. This move, designed as a tax-free spin-off, will create a new publicly traded company that will be a dominant force in the cable television industry. The company, referred to as "SpinCo," will focus on delivering a broad array of news, sports, and entertainment content, reaching approximately 70 million U.S. households.

Brian L. Roberts, Chairman and CEO of Comcast, commented on the move, saying, “When you look at our assets, talented management team and balance sheet strength, we are able to set these businesses up for future growth. 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 spin-off is strategically designed to ensure both the new company, SpinCo, and NBCUniversal are well-positioned for future growth in the evolving media landscape. Mike Cavanagh, President of Comcast, explained, “This transaction positions both SpinCo and NBCUniversal to play offense in a changing media landscape. 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.”

Comcast intends to continue focusing on its key growth businesses, including broadband, wireless, business services, streaming, and its theme parks, as it further refines its strategic priorities across Content & Experiences and Connectivity & Platforms. This move is expected to be accretive to revenue growth for Comcast while maintaining the company’s credit profile and leverage position.

The new company will be led by Mark Lazarus, currently Chairman of NBCUniversal Media Group, who will assume the role of CEO of SpinCo. Anand Kini, the current CFO of NBCUniversal and EVP of Corporate Strategy at Comcast, will take on dual roles as CFO and COO. Together, Lazarus and Kini will guide SpinCo’s strategy and ensure the company is well-positioned for future growth.

Lazarus expressed excitement about the opportunities ahead, stating, “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. We see a real opportunity to invest and build additional scale, and I’m excited about the growth opportunities this transition will unlock.”

Over the last twelve months, SpinCo has generated approximately $7 billion in revenue. With a strong capital foundation, SpinCo will be well-positioned to pursue growth opportunities, create shareholder value, and provide a focused strategic direction.

The spin-off is expected to be completed in roughly a year, subject to approval by Comcast’s Board of Directors, regulatory approvals, and other conditions. The company has engaged Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC as financial advisors, with Davis Polk & Wardwell LLP providing legal counsel.