Comcast is spinning off its NBCUniversal entertainment and media assets into a separate publicly traded company, the media giant announced Monday.
The plan will put broadcast networks NBC and Telemundo, NBC News, cable network Bravo and streaming service Peacock, the Universal film studios and British TV service Sky into a new free-standing company. The Philadelphia-based Comcast would remain in its core business of distributing pay TV channels and wireless services.
The spinoff would be the second such move by Comcast, which last year completed the spinoff of its cable assets such as CNBC, USA Network and Golf Channel into a new entity called Versant.
“The proposed separation reflects Comcast’s track record of positioning its businesses to compete and win in rapidly changing markets. As technological innovation, consumer behavior and competitive dynamics continue to reshape both media and communications, Comcast’s Board and management team believe each company will be better positioned to pursue its own strategic priorities, invest for growth and create long-term shareholder value as independent entities,” the company said in a statement.
A free-standing NBCUniversal would likely be seen as an acquisition target, as media companies have been consolidating in an effort to get more content and mass distribution for their streaming services. Paramount is on track to close its $111 billion deal to acquire Warner Bros. Discovery, which will combine such media assets as HBO Max, CBS, CNN, Paramount Pictures and Warner Bros. Pictures
Comcast would be a free-standing business well-positioned to combine with another cable and internet provider.
Comcast is expected to complete the spinoff by the end of the year and will retain an 11% stake in the new entity.
Comcast acquired NBCUninversal in 2011. The deal combined the largest distributor of TV channels with a provider of top-rated TV channels and a movie studio. But consumers have gravitated to streaming platforms which have led consumers to cancel their cable packages. Traditional TV viewing has been in a steady decline over the last decade.
NBCUniversal has invested heavily in Peacock but has unable to reach the scale necessary for profitability. Comcast stock price has struggled as a result.
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