Comcast is spinning out Rotten Tomatoes, Fandango and a bunch of NBCUniversal (NBCU) cable networks into a separate company. That means USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and Golf Channel will soon have a new home. Comcast is hanging onto other NBCU operations, namely NBC, Peacock, film and TV studios, Telemundo and theme parks. Bravo is also sticking around to help keep feeding Peacock’s ever-hungry reality TV maw.
Comcast says the new entity will be a “tax-free spin-off” and the step is “expected to be accretive to revenue growth at Comcast and approximately neutral to Comcast’s leverage position.” In other words, it’s to do with money — and perhaps laying the groundwork for further consolidation between major media companies. The spun-out properties pulled in around $7 billion between them over the last year or so, while their future parent will still have a partnership with NBCU. Comcast is aiming to complete the transition within the next year.
In its press release, Comcast calls the spin-off company “SpinCo,” which is a placeholder and surely won’t be the business’ actual name. After all, having “SpinCo” as their parent company’s moniker wouldn’t exactly be great optics for CNBC and MSNBC journalists.
This article originally appeared on Engadget at https://www.engadget.com/big-tech/comcast-is-spinning-out-rotten-tomatoes-and-cable-networks-into-a-separate-company-151153285.html?src=rss