From TODAY to Saturday Night Live, the “30 Rock” building has become a symbol of all-things NBC. Until now, that included USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel.
Come 2025, that will likely no longer be the case, as Comcast Corp. has agreed to move ahead with a spin-off of its cable television assets, creating a new publicly traded company in the process.
Along with the MVPD-distributed networks in this “tax-free spin-off” are complementary digital assets including Fandango and Rotten Tomatoes, GolfNow and Sports Engine, Comcast said.
Media veterans Mark Lazarus and Anand Kini to lead “the well-capitalized independent company” — to be called “SpinCo” — will have what Comcast calls “significant scale as a pure-play set of assets anchored by leading news, sports and entertainment content.”
Lazarus, current Chairman of NBCUniversal Media Group, will serve as the company’s Chief Executive Officer; Kini, current Chief Financial Officer of NBCUniversal and EVP of Corporate Strategy at Comcast, will serve as its Chief Financial Officer and Chief Operating Officer.
“Together they will lead the development of an independent strategy, while also establishing SpinCo as a potential partner and acquirer of other complementary media businesses,” Comcast said.
For Lazarus, “As a standalone company with these outstanding assets, we will be better positioned to serve our audiences and drive shareholder returns in this incredibly dynamic media environment across news, sports and entertainment. We see a real opportunity to invest and build additional scale and I’m excited about the growth opportunities this transition will unlock. Our financial strength will also provide capacity for an attractive capital return policy while allowing for investment in the growth of these businesses.”
While SpinCo will operate as an independent business, it will enter into a transition services agreement with NBCUniversal — allowing SpinCo “to operate seamlessly from day one.”
Still, it suggests SpinCo is being positioned for a buyer, with the proceeds potentially used for a variety of reasons. One industry observer suggests NBCUniversal could acquire additional stations in key markets, such as Graham Media Group’s WDIV-4 in Detroit, making it an O&O in a rejuvenated major market.
“When you look at our assets, talented management team and balance sheet strength, we are able to set these businesses up for future growth,” said Comcast Chairman/CEO Brian L. Roberts. “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.”
Once the spin-off is complete, the NBC Owned Stations will be comprised of the company’s NBC and Telemundo stations, the TeleXitos digital multicast service and the Bravo cable TV network — presumably being kept because of its heavy multidimensional sales opportunity, noted by NBCUniversal during its last several Upfront presentations.
Comcast is targeting to complete the spin-off in approximately one year, subject to the satisfaction of customary conditions, including obtaining final approval from the Comcast Board of Directors, satisfactory completion of SpinCo financing, receipt of tax opinions and receipt of any regulatory approvals.
“There can be no assurance that a separation transaction will occur, or, if one does occur, of its terms or timing,” the company says.
Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are serving as financial advisors to Comcast, and Davis Polk & Wardwell LLP is serving as legal counsel.
This article sheds light on Comcast’s plans to spin off its cable networks, separating them from its broader media business. This move could allow Comcast to streamline its operations and focus on the evolving digital landscape, especially as traditional cable TV faces challenges from streaming services. It will be interesting to see how this strategy impacts their market positioning and customer base in the long run.