(Bloomberg) — Comcast Corp. plans to spin off cable-TV channels including MSNBC, CNBC and USA, according a person a familiar with the company’s plans, reducing its exposure to a business that’s losing viewers and advertisers.
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Comcast’s NBC broadcast network and Peacock streaming TV business will remain with the parent company, said the person, who asked to not be identified because the news hasn’t been announced. So will Bravo, a cable channel with reality TV shows that are popular on streaming.
The networks being separated produce about $7 billion in annual revenue, according to the Wall Street Journal, which reported the news earlier Tuesday. Mark Lazarus, the current chairman of NBCUniversal’s media group, overseeing TV and streaming, will become chief executive officer of the new company.
As Bloomberg News reported earlier, Comcast plans other management changes that will expand the portfolios of two senior leaders. Donna Langley, NBC’s chief content officer, will become chairman of NBCUniversal Entertainment & Studios, while Matt Strauss, who head the company’s direct-to-consumer streaming businesses, will take Lazarus’ old position.
Comcast, a Philadelphia-based cable-TV company and broadcaster, said in October it was considering a spinoff. The business, which will be distributed to existing Comcast shareholders, will be well capitalized and positioned to make acquisitions of related assets.
“We think there could be an opportunity to play some offense,” President Michael Cavanagh said on an Oct. 31 call with analysts. “We think we have great assets and a great balance sheet, and that’s the thinking.”
(Updates with management changes in fourth paragraph.)
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