Thursday, November 21, 2024
DreamWorks, Telemundo, CNBC, MSNBC, Universal TV And Studio Universal May Have To Undergo A Name Change Under Comcast's Spun Off Company
Wednesday, November 20, 2024
"SpinCo": Comcast Unveils Spun Off Company Home To Brands Like MSNBC And E!
Comcast Plans Massive Cable Spin-Off, Separating USA, MSNBC and More From NBC, Theme Parks
Comcast is planning to spin off most of its cable television networks, including MSNBC and CNBC, into a separate publicly traded company, according to executives with knowledge of the plan.
The spinoff is expected to be formally announced on Wednesday. The Wall Street Journal, which first reported the impending announcement on Tuesday evening, said the involved channels also include USA, Oxygen, E!, Syfy and Golf Channel.
Comcast’s NBCUniversal division is keeping Bravo, the NBC broadcast network, the Peacock streaming service, and all of its other assets, like NBC Sports and the Universal theme parks.
The separate cable channel company will have the same sort of ownership structure as Comcast, but will have its own management team, led by NBCUniversal Media Group chairman Mark Lazarus, who will become CEO of the new venture.
While observers may view the spinoff as an attempt to shed cable channels that are losing value in the streaming age, the channels still contribute strong profits to Comcast’s bottom line. The company’s executives are expected to portray the spinoff as a growth opportunity for an industry in transition, with an eye toward acquiring other channels in the future.
Of course, the standalone cable network venture could also attract buyers as well as sellers. Wall Street analysts are predicting further consolidation of major media companies in the years ahead.
Comcast president Mike Cavanaugh foreshadowed the spinoff during a conference call with investors last month. He said the company was going to study whether it was a good idea to create “a new well-capitalized company that would go to our shareholders” comprised of “our cable portfolio networks.”
The study evidently did not take long.
Craig Moffett, an analyst with MoffettNathanson, told Variety that “investors have yearned for exactly this, or at least something close to it, for years.”
Notably, the spinoff will cleave MSNBC and CNBC, two profitable parts of the NBCUniversal News Group, away from the core news-gathering operation of NBC News. In recent years NBC has tried to bring its broadcast and cable news operations closer together. Now they may be peeled back apart.
Friday, November 15, 2024
Maxime Saada On The Attempted Takeover Of MultiChoice And Canal+'s Rise To Global Dominance
"Time Is Of The Essence": Canal+ And MultiChoice Are Rushing To Finalize Acquisition Terms With Local Legislation
Thursday, November 14, 2024
MultiChoice Working On Getting Deal With Canal+ Approved
MultiChoice Chief Executive Officer Calvo Mawela is preparing to take on US streaming giants as the African TV company works to get its approximately $3 billion deal with Vivendi SE’s Canal+ over the line with regulators.
“A combination gives us a better chance to compete against the global giants,” Mawela said in an interview with Bloomberg TV. “Scale matters in this industry, then you are able to negotiate better rates for content and you are able to generate more revenues, especially with one party operating in French-speaking Africa and one in the English speaking part of Africa.”
The company has been losing subscribers and struggling with currency depreciation across many of its markets, especially Nigeria, that’s hitting profits and customers’ spending power. A deal with France’s Canal+ would help scale a combined entity to better compete for content and technology needed when going up against dominant platforms like Netflix Inc. and Amazon.com Inc., Mawela said.
While the companies have been in talks with regulators in South Africa, where local ownership rules may prove to be a serious regulatory hurdle to the deal, the French broadcaster has continued to slowly up its stake in MultiChoice.
“We put something together that should be acceptable for the regulators, and engagements are ongoing,” he said. “We believe it’s a good story for Africa.”
Africa has a young and fast-growing population that’s an attractive market for streamers, although the continent also struggles with uneven internet access, low incomes and currency volatility. A combination of Canal+ and MultiChoice would create a group with nearly 50 million subscribers and the resources to invest more in local content and sports.
Multichoice is already working with Canal+ on new productions and the South African company, known for its sports content, is providing its partner with access to English Premier League football matches, said Mawela. The company hopes to boost its sales to $1 billion from its Showmax service in the next five years, he said.
French billionaire Vincent Bolloré’s Vivendi is the a process of breaking up his sprawling media and entertainment empire, and Canal+ is actively preparing its own listing in London. The newly spun-off company may also have a secondary listing in Johannesburg.
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Wednesday, November 13, 2024
Could Canal+'s Potential Listing On JSE Have Any Implications On MultiChoice?
Tuesday, November 12, 2024
MultiChoice Facing Challenging Period Ahead Of Canal+ Takeover
Friday, November 8, 2024
December 2024 On History Channel AFRICA | Channel Premiere: Holy Marvels With Daniel Quaid | Returning Shows Including Mountain Men | More
December 2024 On The Home Channel | Channel Premiere: Rich Listers | Returning Shows Including Restoration Australia | More
Wednesday, November 6, 2024
Disney And Canal+ Remain Silent About French Overseas Territories Following The Upcoming Closure Of Disney Channels
Not Shocking!!! The Disney Channels To Go Dark In France By The End Of December With Further Content Being Allocated On Disney+
Saturday, November 2, 2024
Comcast Considering Spinning Off TV Networks As More Households Opt For Streaming
For starters, Comcast president Mike Cavanagh said that the company is weighing a spinoff of its cable networks, which include USA Network, Bravo, MSNBC, CNBC and Syfy. He emphasized that the NBC broadcast network and Peacock would remain with the core company.
“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. 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,” Cavanagh told Comcast’s third-quarter earnings conference call on Thursday. “We are not ready to talk about any specifics yet, but we’ll be back to you if and when we reach firm conclusions.”
And he added that the company is interested in seeking a partner for its Peacock streaming service in a bid to grow the business.
“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,” he said.
Spinning out the cable channels would transform the company’s TV business and would lead to complications for MSNBC and CNBC, which are currently integrated into NBC News. Similarly, shows from Bravo (like Watch What Happens Live and the Real Housewives franchise) are popular on streaming service Peacock.
There has been speculation in the industry that a legacy company with cable channels could launch a rollup vehicle, something that could acquire other channels to build scale, giving it the ability to drive harder bargains with pay TV providers and pursuing other options in streaming.
Cavanagh declined to address that directly on the call, but said that if the company pursues a spinoff, it could “play some offense.”
On the streaming front, while Peacock has acceptable scale (it now has 36 million subscribers), Comcast clearly thinks that working with another partner can make it a more compelling competitor to Netflix. The two logical possible partners are Paramount+ — with executives there openly discussing a partnership — or Warner Bros. Discovery’s Max.
As for the choice to announce their decision to look into the possibilities, Cavanagh said that they wanted to disclose the idea to Wall Street early, rather than have it leak out later.
“The reason we’re announcing here is that we want to study it, there are a lot of questions to which we don’t have answers,” Cavanagh said. “So we want to do the work, with transparency around it, so that — as you know, rumors fly and the like, you know, we expect that — but we want our shareholders to understand what we’re willing to look at.”