Comcast to spinoff cable networks, including MSNBC, CNBC

Comcast plans to spin off its cable television networks into a separate publicly traded company, marking a significant restructuring of its media assets, according to reporting from the Wall Street Journal.

The move will separate MSNBC, CNBC, USA, Oxygen, E!, Syfy and Golf Channel into a standalone entity. Interestingly, Bravo will remain part of Comcast, along with the NBC broadcast network and Peacock streaming platform. 

The spinoff, expected to be announced Wednesday, Nov. 20, 2024, will be structured as a tax-free transaction for Comcast shareholders and take approximately one year to complete.

It is unclear how this decision will affect sports properties shared by the NBC broadcast network and cable entities like USA, as well as news gathering and editorial practices between NBC News, MSNBC and CNBC.

The cable network portfolio generated $7 billion in revenue during the 12 months ending Sept. 30, 2024.

NBCUniversal Media Group Chairman Mark Lazarus will serve as CEO of the new company, while NBCU Chief Financial Officer Anand Kini will take on the roles of CFO and chief operating officer. Comcast Chairman and CEO Brian Roberts will maintain a one-third voting stake but will not serve on the board.

The move comes as traditional cable networks face declining viewership amid consumers’ shift to streaming services. During its third-quarter earnings call in October, Comcast acknowledged it was examining options for its cable network assets.

The company reported losing 365,000 pay TV subscribers in the third quarter of 2024, bringing its total to 12.8 million. Video revenue declined 6.2% year over year to $6.7 billion.

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Other media companies have also recorded significant write-downs on their cable network valuations this year.

Paramount Global and Warner Bros. Discovery took combined write-downs of $15 billion on their cable networks during their second quarters, while Disney recorded a $584 million write-down on its entertainment networks in its fourth quarter.