Comcast has announced Wednesday its intent to create a new publicly traded company comprised of many of NBCUniversal's cable television networks into a new company called SpinCo.
The affected channels include USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel along with complementary digital assets including Fandango and Rotten Tomatoes, GolfNow and Sports Engine.
Comcast Corporation says SpinCo will be an "industry-leading news, sports and entertainment cable television business with a focused strategic direction."
The new company's offerings would reach approximately 70 million U.S. households, Comcast claims.
"When you look at our assets, talented management team and balance sheet strength, we are able to set these businesses up for future growth," said Brian L. Roberts, Chairman and CEO of Comcast. "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.
NBCUniversal will keep NBC entertainment, sports, news and Bravo, Peacock, Telemundo, the theme parks business and film and television studios.
"This transaction positions both SpinCo and NBCUniversal to play offense in a changing media landscape," said Mike Cavanagh, President of Comcast. "Taken together, the entirety of NBCUniversal will be on a new growth trajectory, fueled by our world-class content, technology, IP, properties and talent – all working in concert with each other as an integrated media company."
The company does not anticipate any change to its credit profile or ratings as a result of this transaction.
SpinCo will be led by Mark Lazarus, the current Chairman of NBCUniversal Media Group.
"We will be better positioned to serve our audiences and drive shareholder returns in this incredibly dynamic media environment across news, sports and entertainment," Lazarus.
Comcast is targeting to complete the spin-off in approximately one year after final approval from the Comcast Board of Directors, SpinCo financing and regulatory approvals.
