Bloomberg / Contributor / Getty Images
-
Comcast shares gained in extended trading Tuesday following a report that the company is expected to announce plans Wednesday to spin off its NBCUniversal cable TV networks.
-
The spinoff could mean the separation of assets that generated about $7 billion in revenue in the 12 months ended September 30. Wall Street Journal reported.
-
This move could help streamline the entertainment and media conglomerate’s operations.
Comcast (CMCSA) shares gained in extended trading Tuesday following a report that the entertainment and media conglomerate is expected to announce plans Wednesday to spin off its NBCUniversal cable TV networks.
The move could mean the separation of assets, including channels like MSNBC and USA, which together generated about $7 billion in revenue in the 12 months ended September 30. Wall Street Journal reported, citing people familiar with the matter.
The spinoff, expected to take about a year to complete, could help streamline the entertainment giant’s operations and better position NBCUniversal’s remaining assets for growth.
Comcast had acquired a 51% stake in NBCUniversal in 2011, before purchasing the remainder of NBCUniversal for $16.7 billion in 2013.
Mark Lazarus, the current chairman of NBCUniversal Media Group, is expected to be named CEO of the new company.
Shares of Comcast rose nearly 3% in extended trading on Tuesday following the news. From the beginning of the year to Tuesday’s close, they were down about 3.5%.
CORRECTION – Nov. August 19, 2024: This article has been corrected to reflect that the spinoff could reportedly mean the separation of assets that together generated approximately $7 billion in revenue in the 12 months ended September 30.
