Comcast is in the process of spinning off cable networks including CNBC, MSNBC and E!, according to people familiar with the matter. According to people involved, the spin-off is expected to take about a year. Bravo will not be included in the spinoff, they added. Comcast President Mike Kavanagh said during the company’s quarterly earnings call in October that the company is considering spinning off its cable network.
Comcast is moving ahead with a spinoff of its cable network channels, people familiar with the matter told CNBC on Tuesday.
The separation is expected to take about a year and could be announced by the company as early as Wednesday, the people said.
The new organization will be led by Mark Lazarus, current chairman of NBCUniversal’s media group, one of the people said. NBCUniversal Chief Financial Officer Anand Kini will serve as chief financial officer and executive officer of the new company, according to people familiar with the matter.
Comcast Chairman and CEO Brian Roberts will retain voting rights within the company, but will not serve as an officer or a member of the company’s board of directors, the person added.
Separating the cable network would give it options to integrate with other networks or sell to private equity, one of the people said.
The spinoff will be tax-free and the new company’s stock structure will mirror Comcast’s stock structure, the person said.
At NBCUniversal, current chief content officer Donna Langley will become chairman of NBCUniversal Entertainment and Studios, and Matt Strauss, currently head of direct sales, will become chairman of NBCUniversal Media Group. He will oversee sports and advertising sales. And there will be distribution, the official said. Cesar Conde will remain chairman of NBCUniversal News Group, including overseeing NBC News, and executive vice president Adam Miller will become NBCUniversal’s chief operating officer.
The company announced during its quarterly earnings conference in October that it was considering splitting up its cable network. Comcast President Mike Kavanaugh said the company is considering forming a “new, well-capitalized company that will be owned by our shareholders and comprised of a strong portfolio of cable networks.”
Comcast’s decision comes as millions of customers abandon traditional pay-TV bundles in favor of streaming. The company has been beefing up NBCUniversal’s streaming platform Peacock in recent years.
Comcast shares rose more than 2% in after-hours trading.
Sources said networks included in the spinoff also include E!, Syfy, Golf Channel, USA and Oxygen. Bravo will remain part of Comcast’s NBCUniversal because its content is heavily featured on Peacock, one of the people said.
Kavanaugh said in October that NBCUniversal’s broadcast networks NBC and Peacock would remain with Comcast.
Although cord-cutting is impacting business, traditional television networks remain a cash cow for media businesses. Comcast reported in October that third-quarter revenue for its media division, which primarily consists of television networks, rose nearly 37% to $8.23 billion, largely due to the Olympics. Without the Summer Olympics, revenue would have increased by almost 5%.
The separation will take about a year as the company determines whether it needs to enter into a licensing agreement and whether MSNBC and CNBC will continue to work with NBC News, two people familiar with the matter said.
One of the people said there have been no formal discussions between CNBC, MSNBC and NBC News.
The spinoff was first reported by the Wall Street Journal.
— CNBC’s Julia Boorstin contributed to this article.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
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