Comcast to Spin Off Cable Channels including MSNBC, CNBC, and USA Networks in $7 Billion Deal, Excludes One America News Network
OAN Staff Abril Elfi
11:20 AM – Wednesday, November 20, 2024
Comcast has officially announced a plan to spin off cable channels, including MSNBC, CNBC, USA, E!, and more into a new publicly traded company.
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On Wednesday, the company announced the plan, and it will include the USA Network, CNBC, MSNBC, Oxygen, E!, SYFY, and the Golf Channel. Comcast will also retain key NBCUniversal assets, including the NBC broadcast network, NBC News, NBC Sports, the streaming service Peacock, and the cable channel Bravo.
Comcast President Mike Cavanagh released an internal memo regarding the announcement.
“The transaction will be structured as a tax-free spin to existing shareholders,” Comcast Cavanagh said. “While we don’t have a precise timetable for completing the transition, we are estimating that it will take approximately a year.”
The move comes as the traditional cable television bundle faces significant economic headwinds, particularly the rise of cord-cutting and the shift to streaming alternatives.
Comcast’s cable portfolio continues to contribute to the company’s financial performance in addition to expanding its cultural footprint.
“The well-capitalized, independent company will be positioned to lead in the changing landscape for cable networks given the strength of its portfolio and the quality and focus of its management team,” Cavanagh said.
“The new company will have significant cash flow, a strong balance sheet, and the financial flexibility to pursue growth opportunities, both organically and potentially through acquisitions,” Cavanagh added.
Cavanagh said that the new company will be led by Mark Lazarus, chairman of NBCUniversal’s media group. Anand Kini, NBCUniversal’s chief financial officer (CFO), will serve as the CFO and chief operating officer.
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