Comcast is exploring the potential separation of its cable networks portfolio into a new company as it contends with shifts in the media landscape and the rise of streaming.
During Comcast’s third-quarter earnings call, President Mike Cavanagh indicated that the company is considering creating “a new, well-capitalized company owned by our shareholders” that would encompass its cable networks, including popular channels like Bravo, E!, Syfy, Oxygen True Crime, USA Network, MSNBC, and CNBC.
This proposed spinoff would exclude Comcast’s broadcast network NBC and streaming platform Peacock, both of which remain integral to Comcast’s content strategy. The news comes as Comcast continues to invest in Peacock, which benefited in the third quarter from its exclusive streaming of the Paris Summer Olympics.
Cavanagh addressed the changing dynamics in the television industry, noting the impact of cord-cutting on traditional pay-TV models. Comcast reported a third-quarter loss of 365,000 cable TV subscribers, part of an ongoing trend as viewers increasingly shift to streaming services. The possible restructuring, he noted, would help the cable networks focus on opportunities in a changing media environment and, ultimately, add value for shareholders.
While details of the potential separation remain under discussion, Cavanagh emphasized that the company would consider the structure carefully.
“We are in the early stages of studying this move, aiming to ensure it’s the right path for our assets and our shareholders,” he said.
Cavanagh added that Comcast plans to continue providing updates as decisions are finalized.
The company’s share price rose more than 6% in premarket trading following Cavanagh’s comments, suggesting investor interest in the possibility of a restructuring. Comcast, alongside rivals in the industry, has responded to shifts in viewership by shuttering some underperforming networks in recent years, such as Cloo, Esquire, and NBC Sports Network.
Amid its exploration of a cable network spinoff, Comcast has also ruled out recent mergers and acquisitions, such as with Paramount, though it remains open to strategic partnerships in streaming. With key growth areas spanning connectivity, theme parks, streaming, and studio productions, Comcast maintains its focus on transforming into a top-line growth company.
