On Tuesday, Comcast announced plans to spin off most of its cable news and entertainment channels into a new, independent company. The move was expected after the company’s President, Mike Cavanaugh, hinted as much during last month’s third-quarter earnings call with investors.
For now, the new entity is being called “SpinCo”, pending a more permanent decision on its brand name. Comcast’s existing shareholders will also own the new company’s shares, which will operate a combination of networks that include MSNBC, CNBC, USA, Oxygen, E!, Syfy, and Golf Channel. Comcast’s NBCUniversal division will maintain its control of Bravo and the NBC broadcast network.
The networks under the new company are thought to be declining assets but with annual revenues over $7 billion. Cavanaugh framed the restructuring as an opportunity for the new company to pursue a “growth trajectory,” giving it the flexibility to acquire other cable assets along the way. This framing was met with mixed reactions by investors.
The spinoff resulted in a wide shakeup among the heads at NBCUniversal. After the restructuring, NBC Universal’s Chief Content Officer Donna Langley will move into a new position with the title Chairman of Entertainment and Studios, giving her additional control over investments in the company’s film studio and streaming division.
Langley has been widely praised by those in the exhibition for how she has managed movie output at Universal Studios, including large and successful franchises that include JURASSIC WORLD and FAST & FURIOUS as well as original works such as Christopher Nolan’s OPPENHEIMER.