Comcast Stock Climbs on Anticipation of $7B Spinoff of NBCUniversal Cable Networks | Global News Avenue

Comcast (CMCSAShares of the company rose in intraday trading on Tuesday after reports that the entertainment and media conglomerate is expected to announce plans to spin off its NBCUniversal cable network on Wednesday.

The move could mean the separation of assets, including channels such as MSNBC and USA, which together generated about $7 billion in revenue in the 12 months ended Sept. 30. wall street journal The report quoted people familiar with the matter as saying.

The spinoff, expected to take about a year to complete, could help streamline the entertainment giant’s operations and better position NBCUniversal’s remaining assets for growth.

Comcast has obtained In 2011, it held a 51% stake in NBCUniversal, and then acquired the remaining shares of NBCUniversal for US$16.7 billion in 2013.

Mark Lazarus, current chairman of NBCUniversal Media Group, is expected to be named CEO of the new company.

Comcast shares rose nearly 3% in after-hours trading on Tuesday following the news. Shares are down about 3.5% from the beginning of the year to Tuesday’s close.