Comcast is expected to announce a plan Wednesday to spin off its cable networks into a separate company, two people familiar with the matter told NBC News.
The split would cleave off some of NBCUniversal’s best-known brands, including MSNBC, E!, Syfy, Golf Channel, USA, CNBC and Oxygen, which now face the same cord-cutting challenges as many other major cable channels.
The spinoff plan was first reported by The Wall Street Journal.
Comcast had announced during its quarterly earnings call in October that it was considering spinning off its cable networks.
President Mike Cavanagh said at the time that the company was exploring creating “a new, well-capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks.” He added that NBCUniversal’s broadcast network NBC and the streaming service Peacock would remain with Comcast.
Comcast owns NBCUniversal, which is the parent company of NBC News. A spokesperson for Comcast declined to comment.
Comcast is moving forward with the decision as millions of customers exit the traditional pay TV bundle in favor of streaming. The company has been beefing up Peacock in recent years. Comcast said last month that Peacock’s paid-subscriber count jumped nearly 30% to 36 million year over year.
Bravo will remain part of Comcast’s NBCUniversal because its content is heavily featured on Peacock, CNBC reported.
Traditional broadcast networks remain cash cows. Comcast reported in October that third-quarter revenue for its media segment, which mainly comprises TV networks, was up nearly 37% to $8.23 billion, largely because of the Paris Olympics. Without the Summer Games, revenue was up almost 5%.
Comcast shares were up more than 2% in after-hours trading.
The spinoff will take roughly a year as the company figures out whether licensing agreements need to be put in place and whether MSNBC and CNBC will continue to work with NBC News, CNBC reported.
Mark Lazarus, the current chairman of NBCUniversal’s media group, will lead the new company, CNBC reported, while NBCUniversal’s chief financial officer, Anand Kini, will be the CFO and operating chief.
Comcast Chairman and CEO Brian Roberts will have a voting position in the new entity, but he won’t be on the board of directors, CNBC reported.
At NBCUniversal, Donna Langley, the current chief content officer, will become chairman of NBCUniversal Entertainment and Studios. Matt Strauss, the current head of the direct-to-consumer unit, which includes Peacock, will be chairman of NBCUniversal Media Group, overseeing sports, ad sales and distribution, CNBC reported.
Cesar Conde will continue to lead the NBCUniversal News Group as chairman — which includes oversight of NBC News, Telemundo and local TV stations — and will advise the company on areas of business growth. Executive Vice President Adam Miller will become NBCUniversal’s chief operating officer, CNBC reported.