Comcast to Spin Off Cable Networks—Because Even They Know Cable’s Dead

Comcast to Cable Networks: “It’s not me, it’s you…” 

Well, friends, it finally happened. Comcast is officially spinning off its cable networks, and I can’t say I’m shocked. It’s like me trying to stay in my prime during backyard football on Thanksgiving, eventually, I just have to pull the plug, grab a beer, and call it a day instead.

(Source: Giphy) 

Which is why in this case, that plug for Comcast is MSNBC, CNBC, USA, E!, Syfy, Oxygen, and the Golf Channel. Yeah, that’s right, your favorite guilty pleasures and “news” sources are getting kicked out of the Comcast family and into their very own publicly traded company. 

(Source: CNBC) 

Comcast is basically splitting up its media empire like your parents splitting up their record collection in the ‘90s. NBCUniversal, Comcast’s media darling, is keeping the juicy stuff—NBC (the broadcast network), Bravo (think Real Housewives—cringe), and Peacock (all hail The Office). Meanwhile, the cable networks are being sent off to fend for themselves in what we’ll call “SpinCo” for now until they can figure out a cooler name.

Now, if you thought this was all just a random decision, think again. Brian Roberts, Comcast’s CEO and resident media mogul, is the one playing chess on a checkers board. After building up his cable empire for decades, he’s now doing a 180 and taking notes from his mentor, cable pioneer John Malone. Roberts is pulling a classic page out of Malone’s playbook—spinning off assets to streamline operations and, let’s be honest, prepare for the inevitable: the slow, painful death of traditional cable.

(Source: CNBC) 

Why? Because cable is bleeding dry with subscribers. Everyone’s ditching the bundle and heading for the greener pastures of Netflix, Hulu, and YouTube TV. So, Roberts is saying, “Let’s let these cable networks live out their golden years in peace… and maybe we’ll sell them off later.” Smart. 

Meaning now with SpinCo set to debut next year, it’s already touted as “debt-free and ready to mingle.” Comcast is positioning the new company to scoop up other cable networks and maybe even make a play for a bigger slice of the market. The assets it’s getting aren’t too shabby either—Rotten Tomatoes, Fandango, and a bunch of digital tools like GolfNow and Sports Engine are all part of the package. So, yeah, SpinCo is walking away with a decent portfolio, but let’s not kid ourselves—it’s still cable in 2024.

(Source: Giphy) 

For this reason, this move is all about focusing on Comcast’s future—and that future is streaming. Peacock may have had a rocky start (true story, when I first saw it, I thought it was some terribly branded adult streaming site), but Comcast is betting big on its ability to survive in a world where people would rather binge-watch “Love is Blind” than sit through a Golf Channel marathon.

So by cutting the cable fat, Comcast is simply doing what any smart media giant would do in 2024–cutting the cord before the cord cuts them. As of now, Wall Street seems to be onboard with this decision as the stock is up 0.28% on the day. But like anything, that could change in a blink of an eye. So place your bets accordingly, friends—and as always, stay safe and stay frosty! Until next time…

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Stocks.News holds positions in Netflix as mentioned in the article.