Comcast Sets to Divide Its Cable Networks

Comcast is preparing to separate its cable network channels, insiders informed CNBC on Tuesday. This move is expected to take around a year, with an official announcement potentially arriving as soon as Wednesday. Mark Lazarus, who currently heads NBCUniversal's media group, will lead this new entity. Anand Kini, NBCUniversal's CFO, will also serve as the CFO and operating chief of the new company. Brian Roberts, Comcast's Chairman and CEO, will retain a voting position but won't have an operational role or sit on the board of directors. The spinoff is designed to be tax-free, with the new company mirroring Comcast's share structure. At NBCUniversal, Donna Langley will become the chairman of NBCUniversal Entertainment and Studios, while Matt Strauss will oversee sports, ad sales, and distribution as the chairman of NBCUniversal Media Group. Cesar Conde continues as NBCUniversal News Group's chairman, and Adam Miller will step into the role of NBCUniversal's COO. Comcast first hinted at this split during their October earnings call, aiming to create a well-funded company for shareholders comprising their cable networks. The decline in traditional pay TV has driven this decision. As customers shift to streaming, Comcast has invested heavily in NBCUniversal's Peacock platform. The networks involved in the spinoff include E! , Syfy, Golf Channel, USA, and Oxygen. Bravo will stay with Comcast due to its significant presence on Peacock. Although cord-cutting has affected the business, traditional TV networks remain profitable. Comcast reported a 37% increase in media segment revenue to $8. 23 billion in the third quarter, largely thanks to the Olympics. The spinoff will take about a year to finalize. Comcast needs to determine licensing agreements and whether MSNBC and CNBC will continue working with NBC News. This move was initially reported by The Wall Street Journal.