Comcast To Spinoff MSNBC, CNBC and Other Networks

Comcast is expected to announce Wednesday that it is moving forward with a plan to spin off its NBCUniversal cable TV networks, according to people familiar with the situation, acknowledging that it will be better off without a business that was once its crown jewel.

The Wall Street Journal reports the company, which last month said it was studying the idea, will separate off entertainment and news channels including MSNBC, CNBC, USA, Oxygen, E!, Syfy and Golf Channel. Those assets generated about $7 billion in revenue in the 12 months ended Sept. 30.

Bravo, known for reality TV programming such as the “Real Housewives,” will stay in the mother ship, along with the Peacock streaming service and the NBC broadcast network, the people said.

Comcast is betting that NBCUniversal’s remaining assets—including in broadcast TV, sports, movies and theme parks—will be better positioned for growth, and that its strong balance sheet can absorb the loss of still-healthy profits from cable networks. 

The new cable venture would likely need greater scale to thrive, media executives say. Comcast’s leadership sees the potential for it to consolidate other networks across the dial over time.

When Comcast gained control of NBCUniversal in 2011, its cable networks were considered among the most attractive assets. Channels such as E!, known for red-carpet coverage, and women-focused Oxygen, seemed to have plenty of potential in the growing U.S. cable market. 

However, years of cord-cutting have taken a heavy toll on subscribers and viewership. Every major media company has slashed costs in these networks, but Comcast is the first to hive off nearly the entire business into a separate firm.

Mike Cavanagh

Comcast had announced during its quarterly earnings call in October that it was considering spinning off its cable networks.

President Mike Cavanagh said at the time that the company was exploring creating “a new, well-capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks.” He added that NBCUniversal’s broadcast network NBC and the streaming service Peacock would remain with Comcast.

Comcast owns NBCUniversal, which is the parent company of NBC News. A spokesperson for Comcast declined to comment

Comcast is moving forward with the decision as millions of customers exit the traditional pay TV bundle in favor of streaming. The company has been beefing up Peacock in recent years. Comcast said last month that Peacock's paid-subscriber count jumped nearly 30% to 36 million year over year.