Comcast Corp CMCSA is set to announce a significant restructuring of its media empire, spinning off most of its cable television networks including MSNBC and CNBC into a separate publicly traded company.

What Happened: The new company, to be led by current NBCUniversal Media Group chairman Mark Lazarus as CEO, will house popular channels including USA, Oxygen, E!, Syfy, and Golf Channel. NBCUniversal will retain control of Bravo, the NBC broadcast network, Peacock streaming service, NBC Sports, and Universal theme parks, reported CNN.

The move comes as traditional cable networks face increasing pressure from streaming services. Despite industry headwinds, these channels remain profitable contributors to Comcast’s bottom line. The spinoff is being positioned as a growth opportunity, with potential for future acquisitions in an industry primed for consolidation.

During a recent investor call, Comcast president Mike Cavanaugh had hinted at the possibility, mentioning plans to evaluate creating “a new well-capitalized company” for the cable portfolio networks.

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Why It Matters: The restructuring notably separates MSNBC and CNBC from NBC News, potentially unwinding years of integration efforts within NBCUniversal’s news operations. The company is expected to detail its vision for the news division separation in Wednesday’s formal announcement.

The announcement comes as media companies navigate a rapidly evolving landscape. Walt Disney Co DIS CEO Bob Iger recently stated his company doesn’t need additional assets to compete effectively, having already consolidated through its 20th Century Fox acquisition.

Industry analysts have long anticipated such a move. “Investors have yearned for exactly this, or at least something close to it, for years,” said Craig Moffett of MoffettNathanson to Variety.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.