Comcast Corporation (NASDAQ: CMCSA) announced a tax-free spinoff of NBCUniversal’s cable TV channels, and will list them as a separate public company, currently referred to as SpinCo. The company disclosed that SpinCo will cover news, sports and entertainment content and will include USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel along with complementary digital assets including Fandango and Rotten Tomatoes, GolfNow and Sports Engine, potentially reaching 70 million U.S. households.
NBCUniversal is a major media and entertainment company owned by Comcast. It was formed in 2004 through the merger of NBC and Universal Studios. NBCUniversal’s portfolio includes television networks (such as NBC, MSNBC, CNBC, and USA Network), film studios (Universal Pictures), theme parks (Universal Studios), and digital services (Peacock streaming service).
The company says SpinCo will also leave NBCUniversal strategically well positioned with its broadcast and streaming media properties, including NBC entertainment, sports, news and Bravo – which all power Peacock – along with Telemundo, the theme parks business and film and television studios.
“This transaction positions both SpinCo and NBCUniversal to play offense in a changing media landscape,” said Mike Cavanagh, Comcast President.
Once the SpinCo transaction is completed, Comcast says it will continue to invest in its strategic core growth businesses across its Content & Experiences and Connectivity & Platforms segments that include residential broadband, wireless, business services, streaming, studios and theme parks.
The company expects transaction to be accretive to revenue growth and approximately neutral to Comcast’s leverage position. Comcast does not anticipate any change to its credit profile or ratings as a result of this transaction. The company expects to complete the spin-off in approximately one year, subject to the satisfaction of customary conditions.
Headquartered in Philadelphia, PA, Comcast’s core business is as a cable company that passed 63.4 million homes and businesses in 40 states and the District of Columbia, at the end of 3Q24. The company serves 32 million domestic broadband customers after losing 87,000 broadband connections in the quarter. In the same period, it had 319,000 wireless net adds to reach 7.5 million mobile customers.
For 3Q24, Comcast reported its Connectivity & Platform business generated $20.3 billion in revenues, flat with 3Q23, and Adjusted EBITDA of $8.3 billion, up one percent YoY. Connectivity & Platforms’ capital expenditure decreased 6.5 percent to $1.9 billion, reflecting lower spending on scalable infrastructure and customer premise equipment, partially offset by higher investment in line extensions and support capital.
By John Celentano, Inside Towers Business Editor
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