Comcast Corp. is cleaving off a huge chunk of its television portfolio to create a new company composed of its cable channels, including MSNBC and CNBC.
The Philadelphia-based cable giant plans to unveil the spinoff as well as a new corporate structure for NBCUniversal on Wednesday morning, according to three people familiar with the matter who were not authorized to comment publicly.
The $7-billion spinoff comes as traditional media companies grapple with the diminishing value of what was once an economic pillar of the entertainment businesses. For years, NBCUniversal’s cable channels — including USA, Bravo and E! — provided the company’s most reliable profits.
But as consumers shift to on-demand streaming platforms, the future of cable channels looks increasingly bleak. Comcast is taking an exit ramp on cable programming by creating a new company, comprising nearly all of NBCUniversal’s current cable networks. Comcast’s current shareholders will be given stock in the new company.
Mark Lazarus, who has presided over NBC Sports and NBCUniversal’s networks business for more than a decade, will lead the new company, the knowledgeable people said.
Comcast Chairman Brian Roberts is expected to control one-third of the new company’s voting stock.
The separation, which will likely close in about a year, has already prompted a new management structure for NBCUniversal. The legacy company will hold onto the Universal Pictures film studio as well as the NBC broadcast network, NBC Sports, the Bravo cable channel and streaming service Peacock. Bravo content has long been a potent driver for Peacock.
NBCUniversal Chief Content Officer Donna Langley will assume greater responsibilities as NBCUniversal chairman of entertainment and studios, which will include oversight of NBC Entertainment and marketing, the sources said.
Longtime Comcast executive Matt Strauss will get a big promotion to partner with Langley. Strauss is expected to handle NBC Sports and business-side functions, including distribution and ad sales.
The Wall Street Journal first reported news of the spinoff.
Staff writer Stephen Battaglio contributed to this report.
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