Comcast
Networks USA, Oxygen, E!, Syfy, and Golf Channel will be separated, while NBCUniversal division will retain Bravo. Justin Sullivan/Getty Images

Comcast is proceeding with plans to separate its NBCUniversal cable TV networks, including CNBC, MSNBC and E!, with an announcement expected on Wednesday, according to sources.

In October, during its quarterly earnings call, the company informed investors that it was considering spinning off its struggling cable networks into a separate entity owned by Comcast's shareholders. Cable business have struggled due to the rise of streaming content.

The firm was exploring the creation of "a new, well-capitalized entity owned by our shareholders, comprised of our strong portfolio of cable networks," Comcast President Mike Cavanagh had stated, CNBC reported.

While the networks USA, Oxygen, E!, Syfy, and Golf Channel will be separated, the NBCUniversal division will retain Bravo, the NBC broadcast network, the Peacock streaming service, along with other assets like NBC Sports and the Universal theme parks.

The spinoff is expected to be completed within a year as the company assesses the need for new licensing agreements and decides whether MSNBC and CNBC will continue their collaboration with NBC News.

The cable networks were a key draw when Comcast acquired NBCUniversal in 2011, but with more people turning to streaming services, it has led to a decline in cable TV subscriptions and viewership, Reuters reported.

However, traditional TV networks remain crucial for media companies. In October, Comcast reported that its media division, which is mostly made up of TV networks, saw a nearly 37% rise in revenue for the third quarter, totaling $8.23 billion, due to the Olympics. Without the Games, the revenue still grew by nearly 5%.

These networks generated around $7 billion in revenue over the last 12 months.

While spin-off creates opportunities to merge with other networks or potential sale to private equity firms, it will be exempt from taxes, and the new entity's share structure will be similar to that of Comcast.

Mark Lazarus, the current chairman of NBCUniversal's media group, will lead the new entity, with Anand Kini, NBCUniversal's Chief Financial Officer, serving as its CFO and operating chief. Comcast Chairman and CEO Brian Roberts will keep a voting position in the company but will not have an officer role or sit on the board of directors.

According to Craig Moffett, an analyst with MoffettNathanson, "investors have yearned for exactly this, or at least something close to it, for years," CNN reported.

The spinoff will separate MSNBC and CNBC, two profitable segments of the NBCUniversal News Group, from the core news operations of NBC News. In recent years, NBC has worked to integrate its broadcast and cable news divisions, but now they may be split apart once again.

The spinoff was first reported by The Wall Street Journal.