Comcast Corp. shares gained nearly 3% in after-hours trading on Tuesday following reports that the company plans to spin off its NBCUniversal cable television networks. An official announcement is expected Wednesday, according to sources cited by The Wall Street Journal.
The proposed spinoff would separate assets such as MSNBC and USA Network, which collectively generated approximately $7 billion in revenue over the 12 months ending September 30. The move, anticipated to take about a year to finalize, aims to streamline Comcast’s operations and better position NBCUniversal’s remaining divisions for future growth.
Comcast initially acquired a controlling 51% stake in NBCUniversal in 2011 and purchased the remaining shares for $16.7 billion in 2013.
Mark Lazarus, currently chair of NBCUniversal Media Group, is expected to serve as CEO of the new entity, which will focus exclusively on the cable networks.
The news comes as Comcast shares have faced pressure, down 3.5% year-to-date as of Tuesday’s close, before rebounding in extended trading. Analysts suggest the spinoff could enhance operational focus and shareholder value by isolating the network assets.
Further details on the spinoff, including its financial implications and strategic goals, are expected in the company’s formal announcement.
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