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Comcast shares gained in extended trading Tuesday following a report the company is expected to announce plans Wednesday to spin off its NBCUniversal cable TV networks.
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The spinoff could mean the separation of assets that generated about $7 billion in revenue in the 12 months ended Sept. 30, the Wall Street Journal reported.
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The move could help streamline the entertainment and media conglomerate’s operations.
Comcast (CMCSA) shares gained in extended trading Tuesday following a report 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 that together generated about $7 billion in revenue in the 12 months ended Sept. 30, the Wall Street Journal reported, citing people familiar with the matter.
The spinoff, which is 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 buying the rest of NBCUniversal for $16.7 billion in 2013.
Mark Lazarus, current chair of NBCUniversal Media Group, is expected to be named CEO of the new company.
Shares of Comcast climbed close to 3% in extended trading Tuesday following the news. They were down about 3.5% from the start of the year through Tuesday’s close.
CORRECTION—Nov. 19, 2024: This article has been corrected to reflect the spinoff could reportedly mean the separation of assets that together generated about $7 billion in revenue in the 12 months ended Sept. 30.
