Comcast Corp. is slicing an enormous chunk of its tv portfolio to create a brand new firm made up of its cable channels, together with MSNBC and CNBC.
The Philadelphia-based cable big plans to unveil the spinoff and a brand new company construction for NBCUniversal Wednesday morning, in response to three individuals accustomed to the matter who weren’t approved to remark publicly.
The $7 billion spinoff comes as conventional media corporations grapple with the diminishing worth of what was as soon as an financial mainstay of the leisure business. For years, NBCUniversal’s cable channels, together with USA, Bravo, Syfy, Golf Channel and E! – supplied essentially the most dependable earnings of the corporate.
But as customers shift to on-demand streaming platforms, the way forward for cable channels appears more and more bleak. Comcast is taking an exit ramp from cable programming by creating a brand new firm, encompassing almost all of NBCUniversal’s present cable networks except for Bravo, dwelling of the “Real Housewives.”
NBCUniversal’s legacy will even retain the Universal Pictures movie studio, the NBC broadcast community, NBC Sports and the Peacock streaming service. Keeping Bravo is an attention-grabbing twist, however its content material has been a robust driver for Peacock, and the linear channel nonetheless will get good rankings.
Existing Comcast shareholders shall be granted shares of the brand new firm.
Mark Lazarus, who has presided over the NBC Sports and NBCUniversal community companies for a few decade, will lead the brand new firm, the individuals briefed stated. Lazarus, a former Turner Broadcasting government, joined Comcast in 2010 and took management of NBC Sports the next 12 months after Comcast took management of NBCUniversal from General Electric and put in its personal administration group.
Comcast Chairman Brian Roberts is anticipated to manage one-third of the brand new firm’s voting shares.
The separation, which is able to probably shut in a few 12 months, has already created a brand new administration construction for NBCUniversal.
Donna Langley, NBCUniversal’s chief content material officer, will tackle expanded tasks as president of NBCUniversal leisure and studios, which is able to embrace oversight of NBC Entertainment, Universal’s movie and tv studios and leisure programming advertising, the sources stated .
Langley has lengthy been a revered tastemaker in Hollywood, however her profile inside the firm has risen considerably since she took over the film studio 5 years in the past.
Universal Pictures is now some of the secure and prolific studios round. During Langley’s tenure, Universal produced two of essentially the most worthwhile years in its 112-year historical past, with “Oppenheimer,” directed by Christopher Nolan, producing almost $1 billion in ticket gross sales and profitable the Oscar for the perfect movie.
The studio additionally made “The Super Mario Bros. Movie” and “M3GAN.” This 12 months, Universal has produced hits like “Twisters” and the upcoming first installment of “Wicked,” which is anticipated to be one other field workplace juggernaut.
Comcast Chairman Mike Cavanagh, who runs NBCUniversal, is anticipated to unveil adjustments to his management group.
Longtime Comcast government Matt Strauss will get an enormous promotion to associate with Langley. Strauss is anticipated to supervise NBC Sports and business-side features, together with distribution and advert gross sales. Strauss has been president of NBCUniversal’s worldwide operations and direct-to-consumer choices for the previous 4 years.
The Wall Street Journal first reported information of the spinoff.
Cavanagh hinted on the new construction late final month throughout his most up-to-date earnings name with analysts. He stated such a transfer may enable cable channels “to capitalize on alternatives within the evolving media panorama and create worth for our shareholders.”
Sources near the plan say that NBCU’s cable channels nonetheless generate vital money stream and that the brand new entity may use a few of these earnings to amass different cable retailers to consolidate its affect out there.
However, NBCUniversal distribution executives have lengthy packaged NBC, which boasts “Sunday Night Football,” with the corporate’s cable channels to take care of cable programming charges.
Staff author Stephen Battaglio contributed to this report.
