Comcast plans to announce plans on Wednesday to spin off its cable network into a separate company, two people familiar with the matter told NBC News.
The split will separate some of NBCUniversal’s best-known brands, including MSNBC, E!, Syfy, Golf Channel, USA, CNBC, and Oxygen, which are currently part of many other major cable companies. Channels as well face cord-cutting challenges.
The spinoff plan was first reported by the Wall Street Journal.
Comcast announced during its quarterly earnings conference in October that it was considering spinning off its cable network.
President Mike Kavanaugh said at the time that the company was considering forming “a new, well-capitalized company owned by our shareholders and comprised of a strong portfolio of cable networks.” He added that NBCUniversal’s broadcast network NBC and streaming service Peacock will remain with Comcast.
Comcast owns NBCUniversal, the parent company of NBC News. A Comcast spokesperson declined to comment.
Comcast’s decision comes as millions of customers abandon traditional pay-TV bundles in favor of streaming. The company has strengthened Peacock in recent years. Comcast announced last month that Peacock’s paid membership increased nearly 30% year over year to 36 million.
Bravo will remain part of Comcast’s NBCUniversal, as Bravo’s content heavily features Peacock, CNBC reported.
Traditional broadcast networks remain cash cows. 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 Paris Olympics. Without the Summer Olympics, revenue would have increased by almost 5%.
Comcast shares rose more than 2% in after-hours trading.
CNBC reports that the spinoff will take about a year to determine whether the company needs to enter into a licensing agreement and whether MSNBC and CNBC will continue to work with NBC News.
According to a report from CNBC, Mark Lazarus, current chairman of NBCUniversal’s media group, will lead the new company, and Anand Kini, NBCUniversal’s chief financial officer, will serve as CFO and executive officer.
Comcast Chairman and CEO Brian Roberts will have voting rights in the new company, but will not serve on the company’s board of directors, CNBC reports.
At NBCUniversal, current chief content officer Donna Langley will become chairman of NBCUniversal Entertainment and Studios. According to a report from CNBC, Matt Strauss, currently head of the company’s direct-to-consumer division, which includes Peacock, will become chairman of NBCUniversal Media Group, overseeing sports, ad sales and distribution.
Cesar Conde will continue to lead NBCUniversal News Group as chairman (including oversight of NBC News, Telemundo and local television stations) and advise the company on growth areas. According to a report from CNBC, executive vice president Adam Miller will become NBCUniversal’s chief operating officer.
CNBC’s David Douglas and Julia Boorstin contributed.
