Comcast to spin off NBCUniversal into new company
Comcast to spin off NBCUniversal into new company
The spinoff will see NBCU and Sky sent to their own company, while Comcast’s internet and wireless businesses remain where they are.
Comcast has decided to call it quits in the media game. The tech giant is preparing to spin off NBCUniversal, Sky, and its other media properties into a separate company, allowing Comcast to focus on other parts of its business. It’s another sign of how much the media landscape is evolving at the moment, and it leaves a ton of questions about the future of NBCU and its streaming service Peacock.
Key Details:
- Separate ways: Comcast has decided to spin off NBCU and other media properties.
- Cascading moves: NBCU executed its own spinoff recently, moving most of its former cable assets to Versant.
- Want to make a deal?: The standalone NBCU could be a tempting target for a company like Apple or Amazon.
Comcast will spin off NBCUniversal and Sky into a separate entity, the company announced. The standalone NBCU will include the NBC broadcast channel, Bravo, Telemundo, British broadcaster Sky, and the Peacock streaming service. Henceforth, Comcast will focus on providing broadcast, wireless, and pay-TV services.
The announcement sent shockwaves through an already roiled media landscape. But as one analyst told CNBC after the news broke, it was as propitious a time as any for Comcast to decide it no longer wanted a big presence in the media space.
“It’s time to split,” Rich Greenfield of LightShed Partners said in the interview, noting that Comcast and NBCU’s core businesses aren’t compatible anymore. “Those days are over,” he finished.
The split is expected to take around a year to complete. Comcast will retain a nearly 20% stake in NBCU for up to 1 year after the spinoff is completed. Current Comcast co-CEO Mike Cavanagh will be in charge of the independent NBCU. This isn’t the first spinoff in the company’s recent history; last year, NBCU decided to spin off most of its cable assets into a new company called Versant.
The ultra-streamlined NBCU can now plot its own future. It could attempt to snatch up smaller entities like AMC or STARZ, or it could prove a tempting acquisition target for a company like Apple or Amazon. Acquisition could well be on NBCU’s mind, as it pushed Comcast to bid on Warner Bros. Discovery late last year, before being forced out of the pursuit. The Streamable will keep you apprised of any such moves in the future, should they occur.
“Once this transaction is complete, our portfolio will be focused, purposeful and strong,” Cavanagh wrote in a statement. “The Versant spin enabled NBCUniversal to create a more integrated company, fueled by our world- class content, technology, IP and talent. Our businesses fit well together and are set up for success. Going forward, we will control our own destiny, play offense and move with urgency.”
Peacock
Peacock is a subscription video streaming service from NBCUniversal that includes original shows, blockbuster movies, and classic television series. Peacock is home to “Yellowstone,” “The Office,” and original hits like “Poker Face” and “Bel-Air.” You can also watch live sports and NBC programming, including the NFL, MLB, WWE, the Olympics, the Premier League, NASCAR, the French Open, college football and basketball, and the PGA Tour. Premium Plus subscribers can stream their local NBC feed in all 210 markets.