Comcast Corporation announced its plan to create a new publicly traded company, SpinCo, through a tax-free spin-off. This company will consist of a robust portfolio of NBCUniversal’s cable television networks, such as USA Network, CNBC, MSNBC, Oxygen, E!, SYFY, and Golf Channel. In addition, other digital assets include Fandango, Rotten Tomatoes, GolfNow, and Sports Engine.
A New Leader in News, Sports, and Entertainment
SpinCo is set to become an industry-leading cable television business with a strategic focus on news, sports, and entertainment. To be clear, the company’s diverse and differentiated content offerings will reach approximately 70 million U.S. households. “With significant financial resources from day one, SpinCo will be ideally positioned for success and highly attractive to investors, content creators, distributors, and potential partners,” stated Brian L. Roberts, Chairman and CEO of Comcast.
Strategic Positioning for NBCUniversal
This spin-off will strategically position NBCUniversal’s broadcast and streaming properties, including NBC entertainment, sports, news, Bravo, Telemundo, theme parks, and film and television studios, on a new growth trajectory. Mike Cavanagh, President of Comcast, emphasized, “This transaction positions both SpinCo and NBCUniversal to play offense in a changing media landscape.”
SpinCo’s Leadership and Vision
SpinCo will be led by Mark Lazarus, current Chairman of NBCUniversal Media Group, as CEO, and Anand Kini, current CFO of NBCUniversal and EVP of Corporate Strategy at Comcast, as CFO and COO. Lazarus highlighted the company’s potential, stating, “As a standalone company with these outstanding assets, we will be better positioned to serve our audiences and drive shareholder returns in this incredibly dynamic media environment.”
Financial Strength and Future Growth
SpinCo, expected to generate approximately $7 billion in revenue, will benefit from a well-capitalized balance sheet and financial flexibility. The company will be positioned for long-term growth and value creation for stakeholders, with opportunities for investment and capital returns.
Transaction Details
The spin-off is expected to be completed in approximately one year, subject to customary conditions and approvals. Advisors for Comcast include Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, and Davis Polk & Wardwell LLP.
This strategic move by Comcast reflects its commitment to invest in core growth businesses across content, connectivity, and platforms, ensuring a strong future for both SpinCo and NBCUniversal.
