By Daybreak Chmielewski
(Reuters) – Comcast is shifting ahead with plans to spin off its NBCUniversal cable tv networks together with MSNBC and CNBC, sources say, shedding a as soon as core a part of the enterprise that has been a casualty of the streaming video revolution.
The corporate final month instructed traders it was evaluating hiving off its cable networks right into a separate firm owned by Comcast’s shareholders.
“We expect there could possibly be a chance to play some offense,” stated Comcast President Michael Cavanagh stated through the firm’s third quarter investor name.
The brand new enterprise could be well-capitalized, stated one supply, who added on Tuesday that it might be positioned to accumulate different cable networks if the trade consolidates.
Comcast would retain NBCUniversal’s NBC broadcast tv community, its movie and tv studios and its theme parks, in addition to its Peacock streaming service. Comcast additionally would retain its Xfinity broadband service.
The spinoff could be comprised of the cable information retailers and different cable networks, akin to USA, E!, Syfy and the Golf Channel, in response to the Wall Avenue Journal, which first reported the choice.
These still-profitable networks generated about $7 billion in income over the past 12 months, the Journal reported.
The cable networks had been a lovely lure when Comcast accomplished its takeover of NBC Common in 2011, however the rise in recognition of streaming providers has eroded cable TV subscriptions and viewership.
In August, Warner Bros Discovery wrote down the worth of its tv property by $9 billion. Paramount World adopted swimsuit, taking a $5.98 billion cost for its tv networks that very same month. Walt Disney evaluated shedding its cable networks earlier this 12 months, however in the end rejected the concept.
(Reporting by Daybreak Chmielewski in Los Angeles, modifying by Peter Henderson, Michael Perry)
