Comcast Spinoff Plans Materialize: MSNBC, CNBC, and E! Headed to ‘SpinCo’

Comcast has been exploring the idea of spinning off some of its cable networks for some time now.

Now, according to CNBC, those plans have been made public, along with some concrete details as to how the spinoff might proceed.

Comcast To Spin Off MSNBC, CNBC, E! and Other Properties Into New Publicly Traded Company

In a memo written by Comcast President Mike Cavanagh, it’s indicated that “USA Network, CNBC, MSNBC, Oxygen, E!, SYFY, and Golf Channel, along with complementary digital assets including Fandango and Rotten Tomatoes, GolfNow and Sports Engine,” will be spun off from Comcast’s NBCUniversal to form a new publicly traded company.

That company, tentatively titled “SpinCo,” will be headed up by Mark Lazarus as CEO — current chairman of NBCUniveral’s media group — and NBCUniversal CFO Anand Kini, who will serve as SpinCo CFO as well as operating chief.

Per Variety, the move comes in response to financial challenges posed both to its own cable companies as well as the industry as a whole. A spinoff could present the opportunity to strengthen NBCUniversal’s higher-performing properties while also giving SpinCo a chance to enjoy success under a concerted repackaging effort.

“When you look at our assets, talented management team and balance sheet strength, we are able to set these businesses up for future growth,” Comcast CEO and Chairman Brian L. Roberts said in a statement. “With significant financial resources from day one, SpinCo will be ideally positioned for success and highly attractive to investors, content creators, distributors and potential partners.”

As Adweek outlined, the news comes on the heels of declining ratings for MSNBC, as well as news that “Morning Joe” hosts Joe Scarborough and Mika Brzezinski would be holding a sit-down interview with former President (now President-elect) Donald Trump. The move was described by critics as a cynical bid to improve flagging viewership numbers.

The process of undertaking the spinoff, according to Cavanagh’s memo, could take approximately a year.

Cord-Cutting Continues To Hurt the Cable TV Industry

Cord-cutting is certainly not a new prospect, but it does seem to be a continuing headwind for cable television networks even in 2024.

Citing analyst data from analyst firm MoffettNathanson, CNBC reported that 4 million traditional pay TV customers had exited the market in the first six months of the year. For its part, Comcast admitted a loss of 365,000 TV customers during the third quarter of 2024 alone.

Despite this, Comcast also reported that third-quarter revenue for its media segment had climbed by a significant 37% (to $8.23 billion) in the third quarter, although much of this success was attributed to interest in the Olympics. Remove the Olympics from the equation and revenue was still up, but by a much more modest figure of around 5%.

By shedding cable networks that may have been detrimental to its bottom line and giving them new life under a publicly traded company, Comcast could see the creation of SpinCo as a win-win prospect.

Regardless of any challenges the cable industry has, and continues, to face, Cavanagh seemed upbeat as to SpinCo’s future prospects in his remarks.

“SpinCo will provide a diverse and differentiated content offering that will reach approximately 70 million U.S. households, making it highly attractive to investors, content creators, distributors, consumers, and potential partners. The company will have significant cash flow, a strong balance sheet, and the financial flexibility to pursue growth opportunities, both organically and potentially through acquisitions,” Cavanagh said in the memo.