By Dawn Chmielewski
(Reuters) – Comcast is moving forward with plans to spin off its NBCUniversal cable TV networks including MSNBC and CNBC, sources say, divesting a once core part of the company that has fallen victim to the streaming video revolution.
The company told investors last month that it was evaluating spinning off its cable networks into a separate company owned by Comcast shareholders.
“We think there could be an opportunity to mount some sort of attack,” Comcast President Michael Cavanagh said during the company’s third-quarter investor call.
The new company would be well capitalized, a source said, adding Tuesday that it would be positioned to acquire other cable networks as the industry consolidates.
Comcast would retain NBCUniversal’s NBC television network, its film and television studios and its theme parks, as well as its Peacock streaming service. Comcast would also keep its Xfinity broadband service.
The spinoff would include the cable news channels and other cable networks, such as USA, E!, Syfy and the Golf Channel, according to the Wall Street Journal, which first reported the decision.
These still-profitable networks generated about $7 billion in revenue over the past 12 months, the Journal reported.
The cable networks were an attractive draw when Comcast completed its acquisition of NBC Universal in 2011, but the rising popularity of streaming services has eroded cable TV subscriptions and viewership.
In August, Warner Bros Discovery wrote down the value of its television assets by $9 billion. Paramount Global followed suit, taking a $5.98 billion fee for its television networks that same month. Walt Disney evaluated divesting its cable networks earlier this year, but ultimately rejected the idea.
(Reporting by Dawn Chmielewski in Los Angeles, Editing by Peter Henderson, Michael Perry)