Comcast is turning to an executive with experience in spinning off big, popular consumer-targeted businesses, former Yum! Brands CEO David Novak, to chair its cable network spinoff, the so-called SpinCo.
Novak led Tricon Global Restaurants, a publicly traded restaurant conglomerate that was spun off of PepsiCo in 1997, and which includes KFC, Taco Bell and Pizza Hut. It was rebranded as Yum! Brands in 2002.
Comcast announced back in November that intends to spin off most of its linear cable channels, including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY and the Golf Channel, as well as digital assets Fandango, Rotten Tomatoes, GolfNow and SportsEngine.
In the 72-year-old Novak, the telecom and media company obviously sees relevant experience.
“As Comcast separates this business, we’re excited that SpinCo will have the talent and success of David Novak as its new chairman,” said Brian L. Roberts, chairman and CEO, Comcast Corporation, in a statement. “With David’s track record of driving growth and value creation at public companies, he is the ideal person to assemble and lead a world-class board.”
Upon announcement of the spinoff, Comcast appointed David Lazarus, formerly chairman of NBCUniversal Media Group, as CEO of SpinCo. The company has been moving quickly to staff up Lazarus’ team — earlier in the month, it confirmed that former iHeartMedia Chief Legal Officer Jordan Fasbender would serve as general counsel.
SpinCo is also reportedly close to announcing a New York real estate deal for headquarters, as well as a permanent name.
Comcast is aiming to have a separately traded public company, owned by Comcast shareholders, spun off by the end of 2025.
Fortunately for Comcast, which has suddenly found itself among a number of media and tech companies in the crosshairs of an activist FCC, SpinCo doesn’t face regulatory review by the Federal Communications Commission. None of its NBCUniversal broadcast assets are part of the spinoff.
However, SpinCo does have to abide by SEC rules in structuring itself, a process for which both Novak and Fasbender are likely to be useful.
Meanwhile, on an operational level, SpinCo will reportedly separate its master control and technical hub from NBCUniversal’s facility in Colorado.
Separated itself from NBC News’ physical infrastructure, MSNBC will be remain based in Manhattan, alongside SpinCo headquarters, but use the Englewood Cliffs, N.J. home of CNBC, a broadcast facility built in 2003, as a centralized location for major technical operations.
MSNBC has also secured office space at 400 North Capitol in Washington, D.C. to establish a new newsroom.