Comcast has announced its plans to spin off several of its cable television networks, including once-popular channels like USA, Oxygen, E!, SYFY, and Golf Channel, along with others like CNBC and MSNBC.
The spin-off will also include movie ticketing platform Fandango and the Rotten Tomatoes movie rating site, while Peacock and Bravo will remain with Comcast.
The big picture: Mark Lazarus, the current chairman of NBCUniversal Media Group, is set to become the CEO of the new entity, with Anand Kini as the CFO and COO.
- The assets that will comprise the new company generated approximately $7 billion in revenue out of Comcast’s total revenue of around $123 billion in the 12-month period ending September 30.
- Comcast envisions the new company as having the financial flexibility to potentially acquire other media businesses, with the spin-off targeted for completion in about a year, pending financing and regulatory approvals.
Go deeper: The shift towards streaming and other revenue sources, such as movie studios and theme parks, reflects Comcast’s broader strategic move away from traditional cable services.
- Peacock, Comcast’s streaming service, has seen significant growth, with paid subscribers reaching 36 million and revenue soaring to $1.5 billion in the most recent quarter.
- The success of Peacock was boosted during the 2024 Paris Olympic Games, where viewers streamed over 23 billion minutes of Olympic coverage, marking a 40% increase over all previous Summer and Winter Olympics combined.
- In the same quarter, Comcast reported revenue exceeding $32 billion and a profit of $1.12 per share, driven by the success of “Despicable Me 4” at the summer box office.
What we’re watching: Comcast is set to open its Epic Universe theme park in Orlando in May of the following year.
