Panic erupted at MSNBC headquarters Wednesday when parent company Comcast confirmed a major spinoff of its cable assets, with top executives even suggesting the left-leaning network might be forced to change its name.
MSNBC stars Rachel Maddow, Chris Jansing and Katie Toole attended a tense 10 a.m. meeting at 30 Rock in Midtown led by NBC Universal chairman Mark Lazarus, who will lead the new company, sources said. told the Post.
The need to change the station's name, logo and headquarters comes as staffers fear impending layoffs after reports surfaced that the new company could be separated from NBC News' news division, according to people familiar with the matter. There have been a number of questions about whether or not there is one.
Insiders said Lazarus told MSNBC staff he did not know whether the network's identity or home office would need to change.
“Everything is up in the air, so everyone is panicking,” one MSNBC official told the Post.
Another source close to the network added: There is an election and the holidays are coming up. People are tired and just trying to get through it. ”
MSNBC declined to comment.
Comcast announced Wednesday that MSNBC, whose anchors include Joy Reid and Lawrence O'Donnell, will join CNBC, Oxygen, E!, SYFY and Golf Channel as part of a new company called SpinCo.
Meanwhile, NBC News, NBC Sports, Telemundo, and streaming services Peacock and Bravo will remain under NBCUniversal.
“Morning Joe” co-host Joe Scarborough aired his fears on “Morning Joe” before the meeting, nervously joking on air, saying, “In a year, we're all going to be fired.” “It might happen,” he said.
“When something like this happens, you never know what's going to happen,” he said of the news, with co-host Mika Brzezinski adding, “It's either that or tomorrow.”
The spinoff of the cable assets, which have suffered from declining viewership even though most are still profitable, is expected to take about a year.
MSNBC and CNBC routinely share coverage and contributors, among other things, raising concerns among the company's journalists about the possibility of being separated from NBC News.
For example, much of MSNBC's daytime schedule is filled with correspondents from the NBC News affiliate, raising concerns about how the station would manage its coverage and whether it would result in major disruptions. There is.
Employees at the meeting asked Mr. Lazarus questions about MSNBC's reporting process and whether it was necessary to “build from scratch” a department that verifies news, according to people familiar with the matter.
Mr. Lazarus compared Spinco to a “well-funded startup,” according to people at the meeting, although he denied knowing it.
Mr. Lazarus was welcomed to attend, although details were not disclosed, and Mr. Maddow said at the meeting, “We're glad he's been here since day one,” the people said.
Mr. Toole agreed, saying, “I like the sound of a well-funded startup.”
MSNBC President Rashida Jones thanked Lazarus for speaking out to staffers, saying, “Change is always complex.”
“I don't think anyone knows anything,” said a source close to the situation. “I think it's going to take them a year to figure this out.”
MSNBC's ratings have been in decline since Donald Trump defeated Vice President Kamala Harris on Nov. 5.
The rabidly anti-Trump network has averaged about 550,000 viewers since Election Day, down 39% from October, according to Nielsen data. Primetime MSNBC viewership fell 53%, according to Nielsen.
An MSNBC official said, “People are anxious, but I don't think they are more anxious than they were five minutes before this announcement.'' “Business isn't going well.”
Like other cable networks, MSNBC faces major business challenges, including cord-cutting, as more customers choose to get their news via streaming.
MSNBC is expected to lose about 10.5% of its subscribers between the end of 2023 and the end of 2025, according to estimates from market research firm Kagan, part of S&P Global Intelligence.
The company estimated that MSNBC could average 61.3 million viewers by the end of 2025, compared to 68.5 million in 2023.
Rival CNN suffered a similar decline, averaging 413,000 viewers, down 22% from its October average. Primetime viewership declined by 43%.
Meanwhile, Fox News continues to see viewership growth in the weeks following the election. The network's total daily viewership was up 38% and primetime viewership was up 21%.
For Comcast, the tax-free spinoff provides relief from the declining cable network. In addition to its Xfinity broadband service, Comcast will be able to focus on NBCUniversal's NBC broadcast television network, movie studios, theme parks and streaming services.
SpinCo supporters say the cable network could use its reported $7 billion in annual revenue to reinvest in the cable network, potentially attracting investors and partners when the separation occurs next year. claims.
“Given our assets, talented management team, and balance sheet strength, we position these businesses for future growth,” said Brian Roberts, Comcast Chairman and CEO. We can launch towards this goal.” “With significant capital from day one, SpinCo is ideally positioned for success and will be highly attractive to investors, content creators, distributors and potential partners.”
