Comcast (CMCSA) is spinning off its cable network channels that have been a drag on its business amid declining viewership of traditional television programs.
The new company will be led by Mark Lazarus, the current chairman of NBCUniversal’s media group. The separation is expected to take about a year.
Networks that are part of the spinoff include specialty channels CNBC, MSNBC, E!, Syfy, Golf Channel, USA and Oxygen. Bravo will remain part of Comcast as will NBC and Peacock.
Separating the cable networks will give them an opportunity to merge with other networks or potentially be sold to a private equity group.
Comcast executives had said during the company’s most recent quarterly earnings call that they were considering a split of the cable networks.
The move comes as millions of customers exit traditional cable TV in favor of streaming.
Comcast said it still needs to figure out whether licensing agreements need to be put in place, and whether MSNBC and CNBC will continue to work and collaborate with NBC News.
The stock of Comcast has declined 3% this year and is currently trading at $42.32 U.S. per share.
