The entertainment empire behind “Saturday Night Live” and “The Office” is breaking up its family of networks. Comcast dropped a bombshell Wednesday, announcing plans to spin off some of television’s biggest names – MSNBC, CNBC, USA Network, and more – into a separate company.
This isn’t just another corporate reshuffling. The new company, temporarily called “SpinCo,” will take control of channels that beam into 70 million American homes and rake in $7 billion yearly.
The family splitting doesn’t stop at news networks. Entertainment channels USA, Oxygen, E!, SYFY, and Golf Channel are also packing their bags for the new company. Even popular websites Fandango and Rotten Tomatoes – where millions check movie reviews and buy tickets – will join the exodus.
Who’s running this new media powerhouse? Mark Lazarus, currently NBCUniversal Media Group’s chairman, will step up as CEO. Anand Kini will handle the money and operations as both CFO and COO.
Meanwhile, the original NBCUniversal isn’t exactly getting stripped bare. It’s keeping the peacock in its pocket – literally. The Peacock streaming service stays put, along with NBC’s broadcast network, sports division, news operation, and the surprisingly resilient Bravo channel. The company also holds onto its theme parks and movie studios.
The corporate chess game has triggered a leadership shuffle. Donna Langley gets a promotion to entertainment and studios chairperson, while Matt Strauss takes charge as chairman of NBCUniversal Media Group, overseeing Direct-To-Consumer, International Networks, NBC Sports, and other business operations. Cesar Conde continues to lead the NBCUniversal News Group.
Behind the scenes, this move reflects a bigger story: the great migration from traditional cable TV to streaming services. While SpinCo launches with a robust balance sheet and freedom to pursue its own deals, it’s entering a media landscape where cable subscribers are cutting cords faster than ever.
Comcast’s chairman Brian Roberts isn’t letting go entirely – he’ll keep one-third of the voting power in the new company. The entire separation process will take about a year, pending regulatory green lights and other standard approvals.
For Comcast, this corporate split is expected to boost revenue growth without adding debt. The new company starts life with deep pockets and the flexibility to hunt for deals in the rapidly changing media world.