Key facts
- Comcast plans to spin off its NBCUniversal media division, including cable networks like MSNBC, E!, Syfy, Golf Channel, USA, CNBC, and Oxygen.
- The NBC broadcast network and Peacock streaming service will remain under Comcast's ownership.
- The separation is expected to take about a year.
- Mark Lazarus will lead the new company.
- Comcast previously spun off its declining cable TV networks into a business called Versant.
- Potential buyers for the spun-off assets include Netflix, Apple, and Amazon.
Comcast is planning to spin off its NBCUniversal media division, separating its entertainment assets from its broadband business. This move includes cable networks such as MSNBC, E!, Syfy, Golf Channel, USA, CNBC, and Oxygen, which will form a new, independent company led by Mark Lazarus. The NBC broadcast network and the Peacock streaming service, however, will remain under Comcast's ownership.
The decision reflects a broader industry trend where the synergy of combining broadband distribution with content ownership has proven challenging. Historically, companies like Time Warner, AT&T, and Verizon have attempted similar integrated strategies, only to later divest or restructure them. Comcast itself previously spun off its declining cable TV networks into a separate entity called Versant.
Comcast argues that this separation will allow both the broadband and media businesses to pursue their own strategic paths and appeal to different investor bases. The company's broadband division faces increasing competition, while the media sector is in flux. The spun-off NBCUniversal entity, with assets including Universal's film and TV studios and theme parks, could attract interest from major tech players like Netflix, Apple, and Amazon, especially given Netflix's own expansion into experiential revenue streams.
Peacock has shown growth, with 36 million paid subscribers and a 30% year-over-year increase, contributing to a 37% revenue jump in the third quarter. The separation is anticipated to take approximately one year.