Comcast is moving ahead with plans to spin off its cable television network NBCUniversal, which includes MSNBC and CNBC, cutting into a core part of its former business that fell victim to the streaming video revolution, sources said.
The company told investors last month that it was considering spinning off the cable network into a separate company owned by Comcast shareholders.
“We think there may be an opportunity for some kind of attack,” Comcast President Michael Kavanaugh said on the company's third-quarter investor conference call.
The new venture will be well capitalized, one of the sources said, adding on Tuesday that it would be in a position to buy other cable networks if the industry consolidates.
Comcast will retain NBCUniversal's NBC television broadcast network, film and television studios, theme parks and Peacock streaming service. Comcast also plans to maintain its Xfinity broadband service.
The spinoff will consist of cable news stations and other cable networks such as USA, E!, Syfy, and Golf Channel. According to the Wall Street Journalfirst reported this decision.
These still-profitable networks generated about $7 billion in revenue over the past 12 months, the magazine reported.
Cable networks were an attractive temptation when Comcast completed its acquisition of NBCUniversal in 2011, but the growing popularity of streaming services has eroded cable TV's subscriber and viewer numbers.
In August, Warner Bros. Discovery wrote down the value of its television assets by $9 billion. Paramount Global followed suit, filing a $5.98 billion bill for its television network that same month. Walt Disney considered eliminating the cable network earlier this year, but ultimately rejected the idea.
