Comcast, owner of NBC, Peacock, and multiple other cable networks and studio assets announced Tuesday that it was going to spin off the majority of its cable channels into a new company separate from Universal Studios and Peacock.
While Comcast will hold on to Bravo, cable mainstays (MSNBC, CNBC, USA Network, Oxygen, E!, Syfy and Golf Channel) will be out on their own, therefore no longer counting on the expense reports. It should be noted that while Comcast is cutting ties with cable news outlets MSNBC and CNBC, Comcast will still hold on to major NBC brands like NBC News, NBC Sports.
The new company, which will be called SpinCo, will not limited to legacy cable channels. Its portfolio will also house Fandango and Rotten Tomatoes, online golf-course booking service GolfNow and youth-sports platform SportsEngine. Mark Lazarus will lead the venture after a year in charge of Comcast’s TV and streaming operations.
“This transaction positions both SpinCo and NBCUniversal to play offense in a changing media landscape,” said Mike Cavanagh, president of Comcast, in a statement. “Taken together, the entirety of NBCUniversal will be on a new growth trajectory, fueled by our world-class content, technology, IP, properties and talent — all working in concert with each other as an integrated media company.”
Why are they doing this?
The move seems to be an attempt to slim down the company and allow it to focus on profit leaders and at the same time get out from under the cable landscape that is melting like a surprise early fall snowstorm.
Is this bad news for cable news?
It will be interesting to see if such a move costs the associated channels down the line. Without being able to leverage NBC in negotiations for something like The Golf Channel it may be more difficult to find takers for the niche network. Time will tell how the move affects content on Peacock, which houses content from across the Comcast brands.
Comcast’s Universal Studios parks which have been getting major investments over the past 5 years will also remain part of the company ahead of the highly anticipated opening of its third major park in Orlando Fl.
