US media giant Comcast plans to spin off NBCUniversal’s cable TV division as the industry continues to struggle with the rise of streaming giants like Netflix and Amazon Prime.
The plan, officially announced Wednesday, would create a new company that would include channels such as MSNBC, CNBC, USA, E!, Syfy and Golf Channel.
These networks remain profitable, generating a total of $7bn (£5.5bn) in revenue in the year to the end of September.
Comcast will retain its NBC broadcast television network, film and television studios, theme parks, and Peacock streaming service.
Comcast said the goal is to complete the project within about a year.
Comcast is expected to be well-positioned for growth following its separation from the cable network, which has seen viewership decline.
Executives also said they believe the new company is poised to acquire other cable TV networks that could be sold in the future.
Mark Lazarus, chairman of NBCUniversal’s media group, will serve as CEO of the new company.
“We believe there is a real opportunity to invest and build further scale, and we are excited about the growth opportunities unlocked by this transition,” Lazarus said in the announcement.
Comcast President Michael Kavanaugh first hinted at the plan on a conference call with investors last month.
At the time, Kavanagh said he was exploring a strategy to create a “new, well-capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks.”
Comcast took control of NBCUniversal in 2011, before the rise of streaming. At the time, the company’s cable networks were considered some of the most attractive businesses.
But more and more cable TV viewers are canceling their contracts and moving to streaming platforms. Comcast said the brands included in the spinoff reach about 70 million U.S. households.
Earlier this year, Warner Bros. and Paramount Global cut billions of dollars from the valuations of their cable television networks.
Comcast is the first major media company to formally break up.
Walt Disney also considered spinning off its cable network, but ultimately abandoned the plan.
Comcast shares were expected to open up about 2% in New York after the announcement.
