The Comcast NBC logo is displayed on a building in Los Angeles, California, June 13, 2018.
Mike Blake Reuters
Comcast is moving forward with a spin-off of the cable network channel, a person familiar with the matter told CNBC on Tuesday.
The separation is about a year away, and an announcement from the company could come as early as Wednesday, the people said.
The new entity will be led by Mark Lazarus, the current chairman of NBCUniversal’s media group, one of the people said. NBCUniversal Chief Financial Officer Anand Kini will serve as CFO and chief operating officer of the new entity, the people said.
Comcast Chairman and CEO Brian Roberts will retain a voting position at the company, but will not serve as an officer or on the board of directors, the people added.
The spinoff will be tax-free and the new entity’s share structure will mirror that of Comcast, according to the person.
At NBCUniversal, Donna Langley, current head of content, will become chairman of NBCUniversal Entertainment and Studios, while Matt Strauss, current head of the direct-to-consumer unit, will become chairman of NBCUniversal Media Group, overseeing sports, ad sales. and distribution, people say. Cesar Conde will remain as chairman of NBCUniversal News Group, including oversight of NBC News Group, while Executive Vice President Adam Miller will become NBCUniversal’s Chief Operating Officer, he said.
The company had announced during its quarterly earnings call in October that it was considering splitting the cable network. Comcast President Mike Cavanagh said the company is exploring creating “a new, well-capitalized company that is owned by our shareholders and includes a strong portfolio of cable networks.”
Comcast is moving forward with the decision as millions of customers opt out of traditional pay TV packages for streaming. The company has expanded its NBCUniversal Peacock streaming platform in recent years.
Comcast shares were up more than 2% in after-hours trading.
Networks that are part of the spinoff also include E!, Syfy, Golf Channel, USA and Oxygen, people close to the matter said. Bravo will remain part of Comcast’s NBCUniversal because much of its content is shown on Peacock, one of the people said.
Cavanagh had said in October that NBCUniversal’s broadcast networks NBC and Peacock would remain with Comcast.
Although cord-cutting has hurt business, traditional TV networks remain a cash cow for the media business. Comcast reported in October that third-quarter revenue for its media segment, which primarily includes TV networks, rose nearly 37% to $8.23 billion, largely due to the Olympics. Without the Summer Games, revenue was up almost 5%.
The spinoff will take about a year as the companies determine whether licensing agreements are in place, and whether MSNBC and CNBC will continue to work with NBC News, the two people said.
The spin-off was first reported by The Wall Street Journal.
– CNBC’s Julia Boorstin contributed to this article.
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Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
