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Comcast to spin off MSNBC, CNBC, cable streaming entertainment channels: sources
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Comcast to spin off MSNBC, CNBC, cable streaming entertainment channels: sources

Comcast is moving ahead with plans to spin off its NBCUniversal cable TV networks, including MSNBC and CNBC, sources say, shedding a key part of the business that has been a casualty of the video streaming revolution.

The company told investors last month that it was evaluating the exclusion of its cable networks into a separate company owned by Comcast shareholders.

“We think there might be an opportunity to play some offense,” Comcast Chairman Michael Cavanagh said during the company’s third-quarter investor call.

Last month, Comcast told investors it was evaluating spinning off its cable networks, including MSNBC (above) into a separate company owned by Comcast shareholders. MSNBC

Last month, Comcast told investors it was evaluating spinning off its cable networks, including MSNBC (above) into a separate company owned by Comcast shareholders. MSNBC

The new business would be well capitalized, one source said, adding on Tuesday that it would be positioned to acquire other cable networks if the industry consolidated.

Comcast will retain NBCUniversal’s NBC television network, its film and television studios and theme parks, as well as its Peacock streaming service. Comcast will also keep its Xfinity broadband service.

The spinoff would consist of cable news channels and other cable networks such as USA, E!, Syfy and the Golf Channel, according to the Wall Street Journalwhich reported the first decision the decision.

Those still-profitable networks generated about $7 billion in revenue over the past 12 months, the Journal reported.

Comcast will retain NBCUniversal's NBC television network, its film and television studios and theme parks, as well as its Peacock streaming service. Reuters

Comcast will retain NBCUniversal’s NBC television network, its film and television studios and theme parks, as well as its Peacock streaming service. Reuters

Cable networks were an attractive draw when Comcast completed its takeover of NBC Universal in 2011, but the rise in popularity of streaming services has eroded cable TV subscriptions and viewership.

In August, Warner Bros Discovery noted its value television assets by $9 billion. Paramount Global followed suit, taking a fee of $5.98 billion for its television networks in the same month. Walt Disney considered ditching the cable networks earlier this year, but ultimately rejected the idea.