Comcast is spinning out , Fandango and a bunch of NBCUniversal (NBCU) cable networks into a separate company. That means USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel will soon have a new home. Comcast is hanging onto other NBCU operations, namely NBC, , film and TV studios, Telemundo and theme parks. Bravo is also sticking around to help keep feeding Peacock’s ever-hungry reality TV maw.
Comcast says the new entity will be a “tax-free spin-off” and the step is “expected to be accretive to revenue growth at Comcast and approximately neutral to Comcast’s leverage position.” In other words, it’s to do with money — and perhaps laying the groundwork for further consolidation between major media companies. The spun-out properties pulled in around $7 billion between them over the last year or so, while their future parent will still have a partnership with NBCU. Comcast is aiming to complete the transition within the next year.
In its press release, Comcast calls the spin-off company “SpinCo,” which is a placeholder and surely won’t be the business’ actual name. After all, having “SpinCo” as their parent company’s moniker wouldn’t exactly be great optics for CNBC and MSNBC journalists.