US media giant Comcast has announced plans to spin off its NBCUniversal cable television division as it adapts to the growing dominance of streaming platforms like Netflix and Amazon Prime.
The move, unveiled on Wednesday, will create a new company housing channels such as MSNBC, CNBC, USA, E!, Syfy, and the Golf Channel.
Despite declining audiences, these cable networks remain profitable, generating $7 billion in revenue over the past year.
Comcast will retain key assets, including the NBC broadcast network, its film and television studios, theme parks, and its Peacock streaming service.
The spin-off is expected to take about a year to complete, with Comcast aiming to position itself for stronger growth by separating from its cable TV operations.
The newly formed company will be led by Mark Lazarus, chairman of NBCUniversal’s media group, who will serve as its chief executive.
Lazarus expressed optimism about the move, stating, “We see a real opportunity to invest and build additional scale… I’m excited about the growth opportunities this transition will unlock.”
Comcast’s president, Michael Cavanagh, had hinted at this strategy during a call with investors last month, describing plans for a “well-capitalized company” comprising Comcast’s cable network portfolio.
Comcast acquired NBCUniversal in 2011, when cable networks were among its most prized assets.
However, the rise of streaming has drastically altered the media landscape, with many viewers abandoning traditional cable subscriptions.
Comcast estimates the brands in the spin-off currently reach about 70 million US households.
This restructuring comes as other major media companies face similar challenges.
Earlier this year, Warner Bros. and Paramount Global significantly reduced the valuation of their cable networks.
While Comcast is the first major firm to take this step, Walt Disney recently considered a similar move but ultimately decided against it.
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