Comcast Exploring Spinoff of Cable Networks Into New Company

Comcast, amid the upheaval in the TV biz caused by cord-cutting, is considering spinning off NBCUniversal‘s portfolio of cable networks into a new publicly traded company.

Comcast president Mike Cavanagh announced the exploratory plans on the conglomerate’s Q3 2024 earnings call. NBCU’s cable networks include Oxygen True Crime, Bravo, MSNBC, CNBC, USA Network, E!, Syfy, Universal Kids and Spanish-language channel Universo.

“As you know, we chose not to participate in the M&A process around Paramount in the earlier part of this year, but we would consider partnerships in streaming despite their complexities, and 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,” he said.

Cavanagh continued, “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 changing media landscape and create value for our shareholders. We are not ready to talk about any specifics yet, but we’ll be back to you as and when we reach firm conclusions.”

Cavanagh said the hypothetical spinoff would include cable TV networks, not NBC’s broadcast operations. “I think the idea of playing offense… would be a smart thing and we want to study that,” he said.

With the contraction in the pay-TV environment, NBCU has over the years shut down underperforming cablers like Cloo, Esquire and NBC Sports Network.

At this point, which exec might head up a stand-alone NBCU cable network company is not entirely clear.

Frances Berwick is chairman of NBCUniversal Entertainment, in charge of original content, program strategy and business operations for NBC and NBCU’s six cable entertainment networks: Bravo, E!, Oxygen True Crime, Syfy, USA Network and Universal Kids, as well as original content and acquisitions for Peacock. Meanwhile, Cesar Conde is chairman of the NBCUniversal News Group, overseeing of NBC News as well as CNBC, MSNBC, NBC News Now, NBCUniversal Telemundo Enterprises Group and NBCUniversal Local.