MSNBC parent Comcast weighs spin-off of declining cable networks

NBC parent Comcast is exploring developing its struggling cable network business, including left-leaning MSNBC, President Mike Cavanagh said Thursday.

Cavanagh revealed during the third-quarter earnings call that the media giant is considering creating a “new, well-capitalized company owned by our shareholders and comprised of our strong portfolio of cable networks.”

Cable networks include MSNBC, CNBC, Bravo, E!, Syfy, USA Network and Oxygen True Crime.

The potential split would not include the NBC broadcast network or the Peacock streaming service, Cavanaugh said.

“We chose not to participate in the M&A process around Paramount earlier this year. But we would consider broadcasting partnerships,” he added.

Shares of Comcast rose more than 3% in midday trading on Thursday, after the company also reported better-than-expected third-quarter earnings on the back of box office hits and an increase in ad sales fueled by the Olympics .

The executive’s comments come as cable customers continue to cut their traditional TV packages in favor of streaming.

In recent years, Comcast has focused on building its Peacock streaming service, which received a shock during the third quarter when it exclusively broadcast the Summer Olympics in Paris.

Earlier this year, Paramount Global — which owns cable TV networks Comedy Central, Nickelodeon and MTV — agreed to merge with Hollywood production company Skydance Media in a deal that signaled a changing of the guard in the industry.

“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 opportunities in the changing media landscape,” Cavanagh said. .

During the quarter, Comcast’s media business saw a $1.9 billion increase in revenue from the Paris Games — the highest ever for an Olympics — largely due to increased brand advertising.

Meanwhile, Peacock added 3 million paid subscribers in the quarter, bringing its total to 36 million.

Comcast’s total revenue was $32.07 billion, above estimates of $31.66 billion.

However, Comcast also lost 365,000 cable TV subscribers, compared with expectations for 420,300, according to FactSet, as consumers switched from traditional TV to streaming services.

In August, Warner Bros. Discovery booked a large $9.1 billion write-down of its television networks, caused by the revaluation of the segment’s book value.

Analyst firm MoffettNathanson estimated there were 4 million traditional pay TV subscriber losses in the first six months of the year, calling it “a staggering total.”

That includes 2.4 million losses in the first quarter, considered the worst quarter ever for package departures.

“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,” Cavanagh said. “We’re not ready to talk about any specifics yet, but we’ll get back to you as and when we come to certain conclusions.”