US media large Comcast is about to spin off its NBCUniversal cable tv arm, because the trade continues to wrestle with the emergence of streaming giants like Netflix and Amazon Prime.
The plan, formally introduced on Wednesday, is to create a brand new firm that can embrace channels corresponding to MSNBC, CNBC, USA, E!, Syfy and the Golf Channel.
The networks are nonetheless worthwhile and generated a mixed income of $7bn (£5.5bn) within the yr to the top of September.
Comcast will maintain the NBC broadcast tv community, its movie and tv studios and its theme parks, in addition to its Peacock streaming service.
Comcast mentioned the purpose was to finish the plan in a couple of yr.
The expectation is that Comcast will probably be higher positioned for progress after the break up from the cable networks, which have seen audiences decline.
Executives additionally mentioned they believed the brand new firm can be well-poised to purchase different cable TV networks that might doubtlessly go up on the market sooner or later.
The brand new agency may have the chairman of NBCUniversal’s media group, Mark Lazarus, as its chief govt.
“We see an actual alternative to take a position and construct further scale and I am excited in regards to the progress alternatives this transition will unlock,” Mr Lazarus mentioned within the announcement.
Comcast’s president, Michael Cavanagh, first hinted on the plan throughout a name with buyers final month.
On the time, Mr Cavanagh mentioned he was exploring a method that might create “a brand new well-capitalised firm owned by our shareholders and comprised of our sturdy portfolio of cable networks”.
Comcast took management of NBCUniversal in 2011 earlier than the rise of streaming. On the time, its cable networks have been seen as a few of its most engaging companies.
However a rising variety of cable TV viewers have been cancelling their subscriptions and shifting on to streaming platforms. Comcast mentioned the manufacturers to be included within the spin-off reached about 70 million US households.
Earlier this yr, Warner Bros and Paramount International lower billions of {dollars} from the valuation of their cable TV networks.
Comcast is the primary main media firm to formally make the transfer to carve up up its enterprise.
Walt Disney has additionally thought-about spinning off its cable networks however ended up scrapping the plan.
Shares in Comcast have been poised to open for buying and selling in New York about 2% greater after the announcement.
