Comcast announced its plan to spin off its cable network channels, which include CNBC, MSNBC, E! Syfy, Golf Channel, USA, and Oxygen, into a separate entity. The move follows discussions during the company’s October earnings call, where President Mike Cavanagh revealed the possibility of creating a standalone company with a portfolio of these cable networks. The new company is projected to rake in around $7 billion in revenue for the past year. It will be run by Mark Lazarus, NBCUniversal’s chairman of the media group, with Anand Kini being NBCUniversal’s CFO and the company’s operating chief. 

The spinoff is estimated to take about a year. Separately, some existing digital assets the company owns, such as Fandango, Rotten Tomatoes, GolfNow and Sports Engine, will be part of the spin-off. 

NBC, Comcast’s broadcast network, and the streaming service Peacock will stay within NBCUniversal and continue operating under the parent company. Comcast CEO Brian Roberts will maintain financial interests in the new company, informally known as “SpinCo,” but will not be directly involved in its management. 

The decision to spin off the cable networks comes amid the continued trend of “cord-cutting,” where more consumers abandon traditional cable TV subscriptions in favor of streaming services. Comcast lost 365,000 TV customers alone in the third quarter of 2024, a part of an industry-wide decline of roughly 4 million traditional pay TV subscribers in the first half of the year. Still, the cable networks have continued to be profitable: Comcast’s media segment saw nearly a 37 percent increase in revenue for the third quarter, largely fueled by the Tokyo Olympics.  

While Comcast’s cable networks are separating from NBCUniversal, the move provides the new entity with greater flexibility for potential mergers, acquisitions, or sales to private equity. This will also enable further investment in content creation for the entertainment division. Notably, Bravo will stay under NBCUniversal’s umbrella, that is a key network in its portfolio and an essential component of the Peacock streaming service. 

It thus aligns with Comcast efforts to adjust to evolving changes in the media landscape. 

It also positions the new entity to explore further growth opportunities, including licensing content to other platforms or potentially launching its own streaming service.