Comcast To Spin Off NBCUniversal Cable Channels | Global News Avenue

Comcast (CMCSA) said on Wednesday it plans to spin off its NBCUniversal cable network, which includes channels such as MSNBC, CNBC and E!, to develop business hurt by disconnections and the rise of streaming media.

Comcast said the cable assets generated a combined revenue of about $7 billion in the 12 months ended Sept. 30, adding that the new company, tentatively called “SpinCo,” “will cover approximately 7,000 Thousands of American Families.”

This transaction, reported earlier go through wall street journalis expected to be completed in about a year.

“With significant financial resources, SpinCo will be ideally positioned to succeed from day one and be highly attractive to investors, content creators, distributors and potential partners,” Comcast said. Chief Executive Officer (CEO) Brian Roberts said.

Remaining assets include broadcast and streaming assets

The entertainment giant said the spinoff will better position its remaining assets for growth. These include “NBC Entertainment, Sports, News and Bravo – all of which power Peacock – as well as Telemundo, the theme park business and the film and television studios.”

“This deal positions SpinCo and NBCUniversal to attack in the changing media landscape,” Comcast President Mike Cavanagh said.

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.

NBCUniversal Chairman Lazarus to become CEO of new company

Mark Lazarus, current chairman of NBCUniversal Media Group, has been named CEO of the new company. NBCUniversal Chief Financial Officer (CFO) Anand Kini will essay the same role Chief Operating Officer (COO) Position in new company. Comcast said the pair will lead the company’s strategy and position it as a “potential partner and acquirer of other complementary media businesses.”

Comcast shares fell less than 1% after trading opened on Wednesday. It’s down about 4% this year.