Is Comcast's SpinCo Another Canal+'s LicenceCo As The Company Remains Silent On The Future Of It's Cable Networks On DStv And The Rest Of The World?
DStv Without DreamWorks Channel And Telemundo??? Comcast Unveils What Might Be The Future Of NBCUniversal Channels Following Spin-Off
Last year, Comcast made the announcement that most of its cable networks viewed on DStv such as Universal TV, E!, Studio Universal and Telemundo will form part of a standalone company under the working title SpinCo. The media has been trying to get more details about the spinoff but Comcast remains hush hush.
MSNBC Will Not Undergo A Name Change Once It Is Spun Off From Comcast
MSNBC will retain its name after it is spun off from Comcast along with other cable assets.
Mark Lazarus, who is leading the new company, told network staffers of the plans at a meeting today to announce the departure of Rashida Jones as the network’s president and the naming of Rebecca Kutler as interim leader, according to a network source.
“I know there was some discussion with the MSNBC name, so you can take that off of your worry list on things,” Lazarus said at the meeting.
Kutler also will be hiring a head of newsgathering and head of talent, Lazarus said. Throughout its history, MSNBC has drawn on correspondents and anchors from sister network NBC News, which will remain part of Comcast.
Lazarus said, “The only thing I’ll say is the worst thing any leader can do is change something that’s working just because they can. So, if this is working, then there’s no reason to change it.”
The spinoff, announced in November, is expected to take about a year to complete. It also will include USA Network, CNBC, Oxygen, E!, SYFY and Golf Channel.
MSNBC launched in 1996 as a venture between NBC News and Microsoft. It had a heavy emphasis on the then-emerging internet, but its primetime eventually evolved into a progressive alternative to right-leaning Fox News.
Rumour: Universal Kids, The American Counterpart Of DreamWorks Channel Is Shutting Down
Comcast Spin-Off Looking To Buy More TV Channels And Expand The Streaming Market
The cable-TV networks business being spun off by Comcast Corp. will explore acquiring other cable channels and creating its own streaming services to grow after separating from its parent.
Channels specializing in documentaries or food-related shows are among the options for the new company, according to people familiar with the plans. Those are two programming areas the current portfolio lacks.
The spinoff, which hasn’t been named, could also create its own streaming business or packages of channels for online distributors like Amazon.com Inc., said the people, who asked not to be identified discussing nonpublic information. The spinoff will likely negotiate its own distribution deals with pay-TV distributors when its current contracts run out.
Philadelphia-based Comcast on Wednesday formally announced plans to divest most of its cable-TV networks, including MSNBC, CNBC and the USA Network, into a new publicly traded company. The networks generated about $7 billion in revenue over the past 12 months and reach about 70 million US households, the company said.
Cable networks have been a drag on Comcast’s business as consumers continue to cancel pay-TV services in favor of streaming options like Netflix Inc. While the spinoff doesn’t need to acquire more channels, that could be an option as pay-TV distributors look to create more bespoke packages of channels with network owners.
Comcast is keeping the NBC broadcast network and the Peacock streaming service. While Peacock is losing money, it is considered a growth business as consumers switch to online viewing. The most popular programming on both is sports, and Comcast has decade-long rights for the NFL and, starting next year, the NBA. Programs from the channels being spun off represent just 2% of the viewing on Peacock, the people said.
Bravo, a channel specializing in reality TV, is also staying with Comcast because its programming is popular on streaming. Spanish-language network Telemundo will also remain part of Comcast because its audience is considered a growth market.
In a potential bright spot in a media industry buffeted by layoffs in recent year, the spinoff could be opportunity for Comcast to avoid some job reductions: The new company will need to build its own corporate infrastructure. The company will negotiate intercompany agreements on issues like advertising sales, programming and other corporate services.
Mark Lazarus, who’ll be chief executive officer of the new business, told employees Wednesday that a new name for the MSNBC news network could be among the changes, according to Variety.
Under the spinoff plan, shareholders of Comcast will receive stock in the new company, which will also include Oxygen, E!, SYFY and the Golf Channel. It will also own complementary digital assets including Fandango and Rotten Tomatoes, GolfNow and Sports Engine.
Comcast Chairman Brian Roberts, who holds a one-third voting stake in his company, will have a similar holding in the new company.
The spinoff is expected to take a year to be completed.
DreamWorks, Telemundo, CNBC, MSNBC, Universal TV And Studio Universal May Have To Undergo A Name Change Under Comcast's Spun Off Company
"SpinCo": Comcast Unveils Spun Off Company Home To Brands Like MSNBC And E!
How Comcast Plans To Ditch Several NBCUniversal Channels Affects DStv?
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.
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.”