Comcast approves $7 bln spinoff of NBCUniversal cable channels- WSJ

Investing.com-- Comcast Corp (NASDAQ:CMCSA ) is expected to announce on Wednesday that it will proceed with a plan to spin off its NBCUniversal cable television networks, The Wall Street Journal reported, after the company floated the idea last month.

The company will spin off its network television unit, which includes entertainment and news channels including MSNBC, CNBC, E!, Syfy and Oxygen, the WSJ reported on Tuesday evening, citing people familiar with the matter.

The report comes after Comcast had last month raised the possibility of spinning off its cable networks, as it navigates a broader shift away from traditional television and into streaming. WSJ said the assets generated revenue of about $7 billion in the year to September 30. 

The spin-off is expected to take a year to complete, the WSJ report said, and will be led by Mark Lazarus, who is currently the chairman of NBCUniversal’s media group. The spin-off’s ownership structure will mirror that of Comcast. 

Comcast had taken over NBCUniversal in 2011, when its cable networks were flush with strength in the U.S. cable market. But this trend has steadily reversed in the last decade, especially as the advent of streaming spurred a shift in consumers away from cable.

Source: Investing.com