Comcast considering spinoff of NBCUniversal cable channels

Comcast announced Thursday, Oct. 31, 2024, that it may separate its cable networks into a standalone company, following a multi-year strategy of closing underperforming channels while competitors maintain their full portfolios.

The proposed company would include CNBC and MSNBC but exclude the NBC broadcast network and Peacock streaming service.

Comcast President Mike Cavanagh told investors the company would “study” the potential effects of such a transaction, with any resulting entity being distributed to shareholders.

“Like many of our peers in media, we are experiencing the effects of the transition in our video businesses and have been studying the best path forward for these assets,” Comcast President Mike Cavanagh said.

“To that end, we are now exploring whether creating a new, well capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks would position them to take advantage of opportunities in the challenging landscape and create value for our shareholders.”

NBCU’s approach to cable networks differs from its competitors.

Since 2016, when then-CEO Steve Burke noted “there are just too many channels,” NBCU closed multiple networks, including Style, G4, Esquire, Cloo, Chiller and NBCSN. The company redirected NBCSN’s sports programming to NBC, USA Network and Peacock.

This strategy contrasts with other media companies.

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Warner Bros. Discovery recorded a $9.1 billion write-down of TV assets in August, citing business challenges and the projected loss of NBA broadcasting rights. Paramount Global reported a $5.98 billion impairment charge as it prepared for acquisition by Skydance Media.

The proposal raises operational questions about NBCU’s news division.

MSNBC and CNBC currently share resources with NBC News’ reporting infrastructure. 

Some NBCU cable properties maintain distinct audience segments. USA Network broadcasts sports and will resume airing “WWE SmackDown.” Bravo continues its reality programming schedule, including various “Real Housewives” series. Oxygen, created initially to appeal to female audiences by Geraldine Laybourne and Oprah Winfrey, now focuses on true-crime programming.

MoffettNathanson analyst Craig Moffett said investors “have yearned for exactly this, or at least something close to it, for years,” noting the potential separation of Peacock and NBCU’s sports properties from cable’s declining economics.