Comcast is considering spinoff of NBCUniversal cable channels

Comcast announced Thursday that it may spin off its cable networks into a standalone company, following a multi-year strategy of shuttering underperforming channels while competitors maintain their full portfolios.

The proposed company would include CNBC and MSNBC, but exclude broadcast network NBC and streaming service Peacock.

Comcast Chairman Mike Cavanagh told investors the company would “study” the potential effects of such a deal, with any resulting entity being distributed to shareholders.

“Like many of our media peers, we are experiencing the effects of the transition in our video businesses and have studied the best path forward for these assets,” said Comcast President Mike Cavanagh.

“To that end, we are now exploring whether the creation of 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 the opportunities in the challenging landscape and create value for our shareholders.”

NBCU’s approach to cable networks differs from its competitors.

Since 2016, when then-CEO Steve Burke remarked that “there are too many channels,” NBCU has shuttered several networks, including Style, G4, Esquire, Cloo, Chiller and NBCSN. The company rerouted NBCSN’s sports programming to NBC, USA Network and Peacock.

This strategy contrasts with other media companies.

Warner Bros. Discovery took a $9.1 billion writedown of TV assets in August, citing business challenges and the projected loss of NBA broadcast rights. Paramount Global reported a $5.98 billion impairment charge as it prepared for its acquisition by Skydance Media.

The proposal raises operational questions about NBCU’s news division.

MSNBC and CNBC currently share resources with NBC News’ reporting infrastructure.

Some NBCU cable properties maintain distinct audience segments. USA Network airs sports and will resume airing “WWE SmackDown.” Bravo continues its slate of reality programming, including various “Real Housewives” series. Oxygen, originally created to attract female audiences by Geraldine Laybourne and Oprah Winfrey, now focuses on true crime programming.

MoffettNathanson analyst Craig Moffett said investors “have been yearning for this exact thing, or at least something close to it, for years,” noting the potential separation of Peacock and NBCU’s sports properties from the declining cable economy.