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TV networks MSNBC and CNBC to be spun off by Comcast

Getty Images Hoda Kotb, Savannah Guthrie, Jim Cramer and Carl Quintanilla at New York Stock Exchange studio of CNBC's Squawk on the Street show. Getty Images
The new company will include cable TV networks such as MSNBC, CNBC, USA, E!, Syfy and the Golf Channel

US media giant Comcast is set to spin off its NBCUniversal cable television arm, as the industry continues to struggle with the emergence of streaming giants like Netflix and Amazon Prime.

The plan, formally announced on Wednesday, is to create a new company that will include channels such as MSNBC, CNBC, USA, E!, Syfy and the Golf Channel.

The networks are still profitable and generated a combined revenue of $7bn (£5.5bn) in the year to the end of September.

Comcast will keep the NBC broadcast television network, its film and television studios and its theme parks, as well as its Peacock streaming service.

Comcast said the aim was to complete the plan in about a year.

The expectation is that Comcast will be better placed for growth after the split from the cable networks, which have seen audiences decline.

Executives also said they believed the new company would be well-poised to buy other cable TV networks that could potentially go up for sale in the future.

The new firm will have the chairman of NBCUniversal's media group, Mark Lazarus, as its chief executive.

“We see a real opportunity to invest and build additional scale and I'm excited about the growth opportunities this transition will unlock," Mr Lazarus said in the announcement.

Comcast's president, Michael Cavanagh, first hinted at the plan during a call with investors last month.

At the time, Mr Cavanagh said he was exploring a strategy that could create "a new well-capitalised company owned by our shareholders and comprised of our strong portfolio of cable networks".

Comcast took control of NBCUniversal in 2011 before the rise of streaming. At the time, its cable networks were seen as some of its most attractive businesses.

But a growing number of cable TV viewers have been cancelling their subscriptions and moving on to streaming platforms. Comcast said the brands to be included in the spin-off reached about 70 million US households.

Earlier this year, Warner Bros and Paramount Global cut billions of dollars from the valuation of their cable TV networks.

Comcast is the first major media company to officially make the move to carve up up its business.

Walt Disney has also considered spinning off its cable networks but ended up scrapping the plan.

Shares in Comcast were poised to open for trading in New York about 2% higher after the announcement.